Australia’s Monadelphous and Jacobs Engineering Group joint venture (JV) has received a letter of intent (LOI) from Papua New Guinea (PNG)-based oil and gas exploration firm Oil Search for a proposed five-year $250m contract.
The proposed contract carries a value of nearly $50m per year and will require the JV to provide engineering, procurement and construction (EPC) services for Oil Search’s oil and gas production facilities located in PNG’s Highlands region.
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Under the contract, the JV will provide a range of brownfield project services such as engineering, procurement, civil, mechanical and electrical works on pipelines, utilities, facilities and supporting infrastructure.
Monadelphous managing director Rob Velletri said that the proposed contract is based on the company’s decade-long relationship with Oil Search.
Velletri said: “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.”
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By GlobalDataThe JV partnership leverages on Monadelphous’ proficiency within in-field services with Jacobs’ technical engineering capability.
It will optimise constructability input during design and a streamlined handover to site ensuring productivity enhancements and cost savings for Oil Search.
The project is scheduled to begin in the second quarter of this year.
