Engineering company Monadelphous Group in joint venture with Jacobs Engineering Group, has received a letter of intent from Oil Search.

The LOI is for a new proposed five year contract for engineering, procurement and construction (EPC) services on Oil Search’s oil and gas production facilities in the Highlands region of Papua New Guinea (PNG), valued at approximately US$50m per year.

The Monadelphous Jacobs Joint Venture will provide a wide range of brownfield project services including engineering, procurement, civil, mechanical and electrical works on pipelines, utilities, facilities and supporting infrastructure. Works are scheduled to commence in the second quarter of the 2017 calendar year.

The partnership, which combines Monadelphous’ in-field services expertise with Jacobs’ technical engineering capability, will lead to productivity enhancements and cost savings for Oil Search, through optimised constructability input during design and a streamlined handover to site.

Monadelphous Managing Director Rob Velletri said the proposed contract builds on Monadelphous’ decade-long relationship with Oil Search, having provided brownfield project and maintenance services since 2007.

“The proposed contract represents a new chapter in our relationship with Oil Search, moving towards the provision of end-to-end brownfield project delivery in joint venture with Jacobs. It also reflects our position as a leading maintenance and brownfield project service provider in PNG with a strong safety record and local content strategy,” he said.