UGL wins Chevron maintenance contract

Engineering company UGL has won a multi-million five year contract to provide Chevron with maintenance and operation services at its Western Australia gas assets.

UGL said it will undertake mechanical, electrical and instrumentation base maintenance, plant turnaround and brownfield execution services as part of the deal.

UGL expects work to begin on the Gorgon project in the first half of 2014, and says the contract could be extended beyond the five-year term.

The announcement comes less than a week after Chevron revealed costs on its Gorgon project had blown out from $US52 billion to $US54 billion.

"We are very proud to have been selected by Chevron to provide maintenance services across the company's portfolio of critical oil and gas assets in Western Australia," UGL chief executive Richard Leupen said in a statement.

"Securing this contract reflects UGL's position as a leading maintenance service provider to the downstream oil and gas industry in Australia and positions us well to be a key participant in the large pipeline of oil and gas maintenance opportunities in Australia and Asia as committed projects are brought on line, particularly in LNG."

In August UGL announced it would demerge to create two separate companies, a property services business and an engineering, construction, and maintenance.

It comes after the company issued an earnings downgrade after a massive 15% slump in share price.

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