Leighton wins APLNG development contract

CIMIC Group construction company, Leighton Contractors has been contracted by Australia Pacific LNG (APLNG) to deliver gas field development works in the Surat Basin, Queensland. The two-year contract with an additional two-year option will require Leighton Contractors to deliver approximately 200 wells per annum in a series of project works packages. The Collaborative Well Delivery (CWD) project is expected to generate revenue of approximately $300 million for Leighton Contractors over the two-year contract period.

The CWD project will support APLNG's ongoing upstream operations and supply to its liquefied natural gas (LNG) export facility on Curtis Island following the construction phase, which is nearing completion.

CIMIC Executive Chairman and Chief Executive Officer Marcelino Fernandez Verdes comments that the Group’s significant gas sector experience enables Leighton Contractors to provide high value solutions for clients who are developing major gas infrastructure and transitioning to long term sustaining operations. He adds that their diverse capabilities and ability to consistently deliver to client requirements open up several opportunities for the company in this sector.

Leighton Contractors Managing Director Roman Garrido explains that the new contract extends the upstream infrastructure they have delivered for APLNG in the past three years. He noted that their experience with managing complex interfaces across design, construction and commissioning as well as ongoing collaboration with APLNG will ensure new assets are integrated effectively and deliver value to their client’s operations.

Chief Executive of Origin's gas and LNG business, David Baldwin observes that the CWD project represents significant savings of 45% per well connected for APLNG relative to wells delivered during the construction phase of the project. He adds that the project also aligns Leighton Contractors and APLNG around an ongoing continuous improvement programme that leverages the experience of both partners.

Leighton Contractors will deliver the project with design partner Amec Foster Wheeler, which has been designing upstream linear infrastructure for APLNG for the past four years. Local subcontractors, suppliers and personnel from the Western Downs region will deliver at least 15% of the project works.

The planning phase for the first Project Works Package is underway with construction to commence in early October 2015.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.