LNG

Under the contract, Leighton Contractors will provide approximately 200 wells per annum in a series of work packages. The contract has an additional two year option.

ConocoPhillips and Origin Energy own 37.5% stake each in the Australia Pacific LNG while Sinopec owns the remaining 25% interest.

CIMIC expects the collaborative well delivery (CWD) project to generate approximately A$300m ($209m) revenue to Leighton contractors over two years.

The CWD project is designed to support ongoing upstream operations of APLNG and supply to its liquefied natural gas (LNG) export facility on Curtis Island, upon completion of construction.

Work under the contract will be carried out by Leighton Contractors along with design partner Amec Foster Wheeler, which has been designing upstream linear infrastructure since four years for APLNG.

Leighton Contractors managing director Román Garrido said: "This contract extends the upstream infrastructure we have delivered for APLNG in the past three years.

"Our team’s experience with managing the complex interfaces across design, construction and commissioning and ongoing collaboration with our client will ensure new assets are integrated effectively and deliver value to APLNG operations."

The planning phase for the project for the first project works package is underway with construction work scheduled in early October 2015.

Origin gas and LNG business chief executive David Baldwin, said: "We are delighted to see the partnership between Leighton Contractors and APLNG extend into the sustain phase.

"The CWD project represents significant savings of 45% per well connected for APLNG relative to wells delivered during the construction phase of the project, in addition to aligning Leighton Contractors and APLNG around an ongoing continuous improvement program that leverages the experience of both partners."

The Australia Pacific LNG project comprises development of Australia Pacific LNG’s substantial coal seam gas resources in the Surat and Bowen Basins, a 530km transmission pipeline, and a multi-train LNG facility on Curtis Island, near Gladstone.


Image: Australia Pacific LNG project Curtis Island. Photo: courtesy of Australia Pacific LNG.