Clough AMEC awarded Oil Search Kumul Marine Terminal Contract

Engineering and construction company Clough (ASX:CLO) today announced that Clough AMEC, an incorporated 50/50% joint venture between Clough and AMEC, has been awarded a cost reimbursable contract valued at approximately AU$25m, to provide construction management and execution services for the rejuvenation of Oil Search Limited’s Kumul Marine Terminal. The terminal is located approximately 40 kilometres off the southern coast of PNG and exports crude oil via tanker offloading facilities.

The scope of work includes construction management, pre-mobilisation preparation and project materials staging prior to offshore implementation. The offshore execution will involve supervision and management of trades labour.

The onshore preparation component has commenced and will run through until the end of 2011. The offshore work will last approximately four months with project completion planned for April 2012.

Clough CEO John Smith said “We are delighted to be selected by Oil Search to assist with this important rejuvenation project. The award recognises the investment we have made in strengthening the management team and project delivery systems in the business. We will work diligently with our long term partner AMEC and draw on our 26 years of experience in PNG to deliver safe and successful project outcomes for Oil Search.”

AMEC Director Australia and South East Asia, Steve Ciccone said “This award is recognition of the strength of services offered by the high calibre team at Clough AMEC. Together, we look forward to working alongside Oil Search to further develop this important asset.”

Extending the life of the Kumul Marine Terminal is an important requirement for the PNG LNG Project (in which Oil Search has a 29% stake). The PNG LNG Project will produce additional associated liquids which will be exported via the terminal.