Australia: Leighton Offshore’s Subsidiaries Win Wheatstone Contracts

HOCHTIEF continues to expand in the global offshore market. Leighton subsidiaries John Holland and Thiess have won additional contracts from oil and gas group Chevron on the Wheatstone gas project off the Australian coast.

John Holland is to erect numerous refinery buildings for EUR 185 million (AUD 240 million) to process gas from the platform 225 kilometers off the coast. The work includes an operations building, laboratory, maintenance center, and a fire station.

Thiess will construct a 1.2-kilometer, 2.5-meter-diameter tunneled crossing under the ocean to link two Chevron gas reserves with the refinery. This contract is for EUR 43 million (AUD 60 million).

“Thiess already has a major role with Chevron in delivering its Gorgon LNG project and we’re delighted to be increasing our participation in the LNG industry,”  Thiess Managing Director Bruce Munro said.

The Wheatstone shore crossing micro-tunnel will be 2.5 metres in diameter and will be delivered by tunnel boring machine and lined by the pipe jacking method. The micro-tunnel will accommodate a 1.1 metre diameter pipeline to deliver gas from Chevron’s Wheatstone and Iago reserves.

The Chevron-operated Wheatstone Project comprises the Wheatstone and Iago gas fields, located offshore Western Australia in water depths between 330 and 850 feet (100 to 260 meters).

New Subsidiary in Malaysia

Leighton Offshore has established a new subsidiary in Malaysia: Leighton Engineering will support the company with engineering services in all activities in the offshore oil and gas business. The new company starts with a workforce of about 100 and operates out of Kuala Lumpur. It has already secured its first order – a EUR 7.6 million (USD 10 million) contract for engineering and commercial services on the Iraq South Oil Company’s Sealine Project consisting of two offshore platforms off the Iraqi coast.

“This also supports our strategy of exporting our core engineering and construction competencies into the growth markets of Asia and the Middle East. By extending the construction offering of Leighton Offshore with an engineering capability we are able to offer a more integrated solution for the large oil and gas companies who value those services,” explained Hamish Tyrwhitt, Chief Executive Officer of Leighton.

“The expansion in the offshore market follows our objective of growth in tomorrow‘s global markets. I consider these to include the energy sector, transportation infrastructure, and shaping major cities. We are highly successful in the offshore business in Europe,” adds Dr. Frank Stieler, Chairman of the HOCHTIEF Executive Board.

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Offshore Energy Today Staff, December 23, 2011