AUSTRALIAN engineering company Monadelphous Group Limited and joint venture partner Jacobs Engineering Group Inc.have received a Letter of Intent (LoI) from Oil Search Limited to enter into a new proposed five year contract for engineering, procurement and construction (EPC) services on Oil Search’s oil and gas production facilities in the Highlands region of Papua New Guinea valued at approximately US$50 million per annum.
The Monadelphous Jacobs Joint Venture will provide a wide range of brownfield project services including engineering, procurement, civil, mechanical and electrical works on pipelines, utilities, facilities and supporting infrastructure. Works are scheduled to commence in the second quarter of the 2017 calendar year.
The partnership, which combines Monadelphous’ in-field services expertise with Jacobs’ technical engineering capability, will lead to productivity enhancements and cost savings for Oil Search, through optimised constructability input during design and a streamlined handover to site.
Monadelphous managing director Rob Velletri said the proposed contract builds on Monadelphous’ decade-long relationship with Oil Search, having provided brownfield project and maintenance services since 2007.
“The proposed contract represents a new chapter in our relationship with Oil Search, moving towards the provision of end-to-end brownfield project delivery in joint venture with Jacobs. It also reflects our position as a leading maintenance and brownfield project service provider in PNG with a strong safety record and local content strategy,” he said.
The joint venture is expected to provide a wide range of brownfield project services, including engineering, procurement, civil, mechanical and electrical works on pipelines, utilities, facilities and supporting infrastructure.
“We expect to contribute significant value to this strategically important project by leveraging our previous experience in providing engineering services to Oil Search in Papua New Guinea,” said Jacobs Ssnior vice president Andrew Berryman.
“In particular, we recognize a key focus is to increase the efficiency of Oil Search’s brownfield project program through optimised constructability input during the design phase.”
Monadelphous Group Limited is a leading Australian engineering group providing construction, maintenance and industrial services to the resources, energy and infrastructure sectors. For further information, visit www.monadelphous.com.au.
Jacobs is one of the world’s largest and most diverse providers of full-spectrum technical, professional and construction services for industrial, commercial and government organizations globally. The company employs 54,000 people and operates in more than 25 countries around the world.