UPS Operations and Maintenance Services Agreement for the Laminaria-Corallina Oil Field

Upstream Production Solutions

GR Engineering Services Limited (ASX:GNG) (GR Engineering) is pleased to announce that its wholly owned oil and gas services business, Upstream Production Solutions (Upstream PS) has entered into an operations and maintenance services agreement (Contract) with Northern Oil and Gas Australia (NOGA) to operate and maintain the Northern Endeavour floating production storage and offloading facility (FPSO) and associated infrastructure.

Since 1999, the FPSO has been the production vessel associated with the Laminaria-Corallina oil field (Laminaria-Corallina), which remains in steady state production and has recently been acquired by NOGA. Laminaria-Corallina is located in the Timor Sea, approximately 550km northwest of Darwin.

Under the Contract, which has an initial three year term, Upstream PS has been engaged to provide offshore and onshore operations and maintenance services to NOGA. Commencement of the Contract remains subject to certain conditions precedent, all of which are expected to be satisfied within a week of this announcement. Revenue under the Contract is expected to be approximately $30 million per annum.

Upstream PS has satisfied the regulatory processes, including Safety Case acceptance, to commence a transition period following which it will emerge as the Registered Operator of the Laminaria-Corallina production assets, including the FPSO.

We are delighted to be supporting NOGA with its foundation asset. This represents a significant milestone for Upstream PS and a great opportunity to continue expanding our strong offshore capability. This Contract also complements our existing portfolio of operations and maintenance, engineering and production assurance services engagements across Australia. We look forward to working for NOGA, and its highly credentialed team”, said Upstream PS Managing Director, Joe Corvetti.

GR Engineering Managing Director, Geoff Jones said, “We are pleased that Upstream PS has secured this opportunity to operate and maintain a significant offshore production asset. The Contract award demonstrates the ability of Upstream PS management to grow the business and to play an increasingly important role in
GR Engineering’s diversification strategy