BAM Clough Receive Additional Letter of Intent for PNG LNG Jetty Topsides (Papua New Guinea)

Engineering and construction company Clough Limited today announced that the BAM Clough Joint Venture has received an additional Letter of Intent from Chiyoda JGC Joint Venture for the fabrication and construction of the topsides for the PNG LNG condensate offloading jetty.

The second contract is valued at approximately US$53 million, bringing the total value of contracts awarded to BAM Clough for the PNG LNG jetty project to US$308 million. The topsides will be fabricated and assembled at Clough’s Sattahip Fabrication Yard in Thailand, and will be transported and installed at the jetty site, twenty kilometres northwest of Port Moresby.

“Clough and our long-term partner BAM International are delighted to be given the opportunity to deliver the topsides for this EPC project, which will provide continuity of quality work for our yard in Thailand” said Clough’s Chief Executive Officer, John Smith.

BAM Clough JV is a 50/50 joint venture between BAM International bv and Clough Operations Pty Ltd, a wholly owned subsidiary of Clough Limited. Established in 1965, the joint venture has successfully delivered a number of similar projects in that 45 year period.

The PNG LNG Project is an integrated development that includes gas production and processing facilities, onshore and offshore pipelines and liquefaction facility with the capacity of 6.6 million tonnes per annum.

Participating interests include affiliates of ExxonMobil 33.2%, Oil Search Limited 29.0%, Independent Public Business Corporation (PNG Government) 16.6%, Santos Limited 13.5%, Nippon Oil Exploration 4.7%, Mineral Resources Development Company (PNG landowners) 2.8% and Petromin PNG Holding Limited 0.2%.

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Source: Clough, October 5, 2010