Australia: Leighton Provides Update on Gorgon Project Operations

Leighton Holdings Limited is providing this update to the market about the status of the jetty and marine structures contract, comprising a 2.1 km jetty, a heavy lift facility, tug pens and navigation aids, which is being executed for the Chevron-operated Gorgon Project in Western Australia.

The project is being installed at Barrow Island where Chevron Australia is developing one of the world’s largest natural gas projects and the largest single resource natural gas project in Australia’s history.

Leighton Holdings’ Chief Executive Officer, Mr Hamish Tyrwhitt said the Leighton Group is proud to be applying its experience and capabilities to the safe delivery of the project.

“Our operating companies are working together with Chevron Australia to achieve outstanding safety performance on the project and are striving for a new standard for construction safety in Australia,” said Mr Tyrwhitt.

“The scope of the jetty project being undertaken by a Leighton Contractors and Saipem Consortium has evolved since the initial award with the addition of fabrication and transportation of over 2 kilometres of pipe racks, and transportation to site of 24 pre-cast concrete caissons for the heavy lift facility berth. The project has also encountered some weather related challenges which have led to a revised execution methodology requiring the Consortium to provide additional resources to complete the work in a safe and timely manner.

“Chevron and the Consortium have agreed a way forward which provides Chevron certainty in the delivery of the jetty facilities in October 2013,” said Mr Tyrwhitt.

“The Consortium has successfully placed the first pre-cast concrete gravity based caisson forming part of the superstructure of the 2.1 kilometre jetty for the project. This engineering and construction approach has been used in multiple locations around the world and achieving this milestone demonstrates that we are on track in successfully delivering the project.

“Utilising sophisticated GPS technology, the first of 56, 4500-tonne, 26-metre diameter caissons was lowered to its foundation on the ocean floor, 15 metres below sea level, through ballasting. The final position was well within the specified design tolerance,” said Mr Tyrwhitt.

“To date, 35 of the 56 caissons have been fabricated at Henderson, south of Perth, and the remaining units are well advanced. Further placements of jetty caissons will follow using the same techniques and logistics adopted in the first placement.

“Our progress to date confirms that, despite the technical and other challenges of this huge project, the Leighton Group continues to work closely with its client, Chevron Australia, to deliver the country’s biggest natural gas project,” he said.

“We are proud of the solid relationship we have developed with Chevron through the Gorgon Project and welcome the opportunity to continue to work with them in the future.

“We believe the LNG and CSM markets will continue to offer a strong pipeline of construction opportunities for us. This is a market where we have a solid background, a high degree of expertise, and can add value for our clients,” said Mr Tyrwhitt.

The Gorgon Project is operated by an Australian subsidiary of Chevron and is a joint venture of the Australian subsidiaries of Chevron (approximately 47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (one percent) and Chubu Electric Power (0.417 percent).

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Subsea World News Staff , June 15, 2012; Image: Chevron