Friday 15th May, 2020
Contract Award - Upstream Production Solutions Northern Endeavour FPSO
GR Engineering Services Limited (ASX:GNG) (GR Engineering) is pleased to announce that its wholly owned oil and gas services business, Upstream Production Solutions Pty Ltd (Upstream PS) has been awarded a Contract with the Department of Industry, Science, Energy and Resources of the Australian Government (the Department) to provide operations and maintenance to the Northern Endeavour FPSO and associated infrastructure (the Contract).
As previously announced on 17 February 2020, Upstream PS has been providing operations and maintenance services to the Northern Endeavour FPSO under a short term agreement and had been working to agree a longer form contract with the Department.
The initial term of the Contract expires on 31 October 2020, with an option to extend the Contract for a further term. Based on the current budget for core operations services and planned maintenance activities, it is anticipated that revenue from the Contract for the initial term will be approximately $32 million.
Commenting on the award of the Contract, GR Engineering's Managing Director, Geoff Jones stated that:
"We are pleased to continue working with the Department and the relevant regulatory bodies to safely operate and maintain the Northern Endeavour FPSO whilst it remains in a non-producing state under the Northern Endeavour Temporary Operations Program."
About Upstream PS
Upstream PS is a wholly owned subsidiary of GR Engineering Services Limited (ASX:GNG) with an extensive track record in the provision of operations, maintenance, projects and advisory services. The Upstream PS team has served the oil and gas industry for more than 20 years, with a strong reputation for providing safe, innovative and sustainable solutions to production challenges.
For further information please contact:
+61 8 6272 6000
CFO & Company Secretary
+61 8 6272 6000
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