Upstream PS - Northern Endeavour FPSO Contract

Company News

GR Engineering Services Limited (ASX: GNG) (GR Engineering) is pleased to announce that its wholly owned subsidiary, Upstream Production Solutions Pty Ltd (Upstream PS) has been awarded a one year contract with the Department of Industry, Science, Energy and Resources of the Australian Government (DISER) to provide operations, maintenance and project services to the Northern Endeavour FPSO (FPSO) and associated infrastructure (the Contract) in preparation for a disconnection and removal of the FPSO.

As previously announced on 15 May 2020, Upstream PS has been engaged by the Commonwealth since mid-February 2020 to provide operations and maintenance services to the FPSO, in a non-producing state. The current contract is due to expire on 31 December 2020.

The term of the new Contract expires on 31 December 2021. Based on the current budget for core operation and maintenance services and planned pre-disconnection project activities, it is anticipated that revenue from the Contract will be approximately $130 million.

Commenting on the award of the Contract, GR Engineering’s Managing Director, Geoff Jones stated that:

“We are pleased to continue working with DISER and the relevant regulatory bodies to safely manage and maintain the FPSO and execute the required pre-disconnect preparation activities to support a safe removal of the FPSO in the future.”

Ends.

ASX Release


About GR Engineering

GR Engineering specialises in providing fixed price engineering design and construction services to the global resources and mineral processing industries. GR Engineering has a proven track record of delivering integrated project solutions in over 20 countries across all major commodity types. As a group, GR Engineering employs more than 500 professional, technical and support staff throughout Australia and internationally, in addition to a direct construction workforce and subcontracted personnel.

GR Engineering Services Limited is listed on the Australian Securities Exchange (ASX: GNG).

For further information please contact:

Geoff Jones

Managing Director

+61 8 6272 6000

geoff.jones@gres.com.au

Omesh Motiwalla

CFO & Company Secretary

+61 8 6272 6000

omesh.motiwalla@gres.com.au

Follow GR Engineering on LinkedIn.

Category: Company News