GR Engineering Services Limited (ASX:GNG) (GR Engineering) is pleased to announce that its wholly owned subsidiary, Upstream Production Solutions (Upstream PS), has entered into an additional agreement with Origin Energy (Origin), the upstream operator of Australia Pacific LNG, for the provision of wellsite, gas production and water treatment facility maintenance and major works to support Australia Pacific LNG’s operations and maintenance activities in the Surat Basin in South Western Queensland (Contract).
Under the Contract, which has an initial two year term, followed by a one year option (Term), Upstream PS has been engaged to complete scheduled and unscheduled maintenance and associated services for a minimum of 1500 wells, seven gas processing facilities, nine water gathering systems, two water treatment facilities and one pre-treatment facility. Revenue under the Contract is expected to be approximately $50 million in total over the Term 1 .
“We commend our Queensland team’s strong track record of performance since having commenced maintenance activities with Australia Pacific LNG in August 2014, which has led to the award of this additional CSG-LNG Contract. Upstream PS is proud to be playing a role in this transformational project for Origin and Australia Pacific LNG”, said Upstream PS Managing Director, Joe Corvetti.
“Our team looks forward to continuing to deliver value-added solutions, drawing on specialist CSG capability and collaborating with our client to deliver safe and efficient maintenance and operations services whilst maximising plant availability”, said Upstream PS QLD/NSW Regional Manager, Cameron Wills.
1. Assuming the one year option is exercised by Origin.