Monadelphous Secures New Contracts Worth $120 Million (Australia)

Leading engineering group Monadelphous Group Ltd (“Monadelphous” or “the company”) today announced it has secured new contracts and work in Western Australia and Papua New Guinea with a combined value of approximately $120 million.

The contracts and work are with major operators in the oil and gas, iron ore and water sectors. In PNG, Monadelphous has been awarded a three-year extension of a contract with Oil Search for field construction services at its oil and gas production and support facilities in the Southern Highlands Province.

This extension follows a previous three-year contract. The agreement also includes additional work to upgrade Oil Search’s Kutubu and Gobe facilities in preparation for the delivery of gas to the PNG LNG project. This work is scheduled to be completed in the third quarter of 2012.

In WA, Monadelphous’s newly-acquired business KT Pipeline Services has been awarded a contract to construct intake and outfall pipelines and associated work for the desalination plant at CITIC Pacific Mining’s Sino Iron project at Cape Preston in the Pilbara.

The contract is expected to be completed in early 2011. Monadelphous has also been awarded a contract with the WA Water Corporation to supply, construct and commission a water treatment plant at Picton, near Bunbury. The plant, with a capacity of 11 megalitres a day, will treat underground water for supply to Australind and Eaton. It is scheduled for completion in late 2011. The company will also undertake structural and mechanical work for BHP Billiton Iron Ore on Rapid Growth Project 5 at the iron ore port facilities at Finucane Island, Port Hedland.The work is expected to be completed by December 2010.

The contracts and work are spread across Monadelphous’s three operating divisions of Infrastructure (which includes KT), Engineering Construction, and Maintenance and Industrial Services. “They reflect the emphasis we place on maintaining our relationships with customers in major projects, securing new business and continuing our diversification into selected infrastructure areas such as pipelines and water,” Monadelphous Managing Director Rob Velletri said.

[mappress]

Source: Monadelphous, October 7, 2010;