Big con­tract win for M&R’s oil and gas busi­ness plat­form

The Star Early Edition - - NEWS - Roy Cokayne

CLOUGH, part of the oil and gas busi­ness plat­form of JSE-listed Mur­ray & Roberts (M&R), has through its equal joint ven­ture with Amec Foster Wheeler se­cured a five-year con­tract to pro­vide main­te­nance ser­vices to Nor­we­gian com­pany Yara In­ter­na­tional.

The value of the con­tract, which in­cludes an op­tion to ex­tend for a fur­ther five years, was not dis­closed.

Clough AMEC will pro­vide main­te­nance ser­vices to Yara’s ex­ist­ing liq­uid am­mo­nia plant, the Yara Pil­bara am­mo­nia plant, and to the world’s first tech­ni­cal am­mo­nium ni­trate (Tan) manufacturing plant on the Bur­rup Penin­sula, lo­cated

The main­te­nance con­tract is a prime ex­am­ple of what Clough is work­ing to­wards achiev­ing across the group.

near Kar­ratha in Western Aus­tralia.

Tan is the main com­po­nent in ex­plo­sives used by the min­ing, quar­ry­ing and con­struc­tion in­dus­tries.

The Yara Pil­bara plant forms part of Yara In­ter­na­tional’s global pro­duc­tion fa­cil­ity port­fo­lio and was one of the largest am­mo­nia pro­duc­tion fa­cil­i­ties in the world, with pro­duc­tion ca­pac­ity of 850 000 tons of liq­uid am­mo­nia ex­ported from the Dampier Port and traded on South­east Asian mar­kets.

The new tech­ni­cal am­mo­nium ni­trate plant, fully in­te­grated with the Yara Pil­bara am­mo­nia plant, is in the fi­nal com­mis­sion­ing stages and will have a 330 000 ton TAN an­nual ca­pac­ity that will be pre­dom­i­nantly mar­keted and dis­trib­uted to min­ing cus­tomers.

M&R group in­vestor and me­dia ex­ec­u­tive Ed Jardim said yes­ter­day main­te­nance con­tract val­ues tended to be less ma­te­rial than new Green­field con­struc­tion con­struc­tion projects.

How­ever, Jardim said the cer­tainty re­gard­ing an­nu­ity rev­enue for the next five years moved M&R closer to see­ing its strat­egy in ac­tion.

“As the nat­u­ral re­sources mar­ket sec­tors are cycli­cal, se­cur­ing for ex­am­ple long-term main­te­nance projects in the oil and gas plat­form and con­tract min­ing projects in the un­der­ground min­ing plat­form, helps the group smooth the cy­cles a bit in terms of know­ing that a cer­tain per­cent­age of rev­enue will be guar­an­teed over that time if we con­tinue to de­liver to the client,” Jardim said.

Peter Ben­nett, the chief ex­ec­u­tive of Clough and di­rec­tor of Clough AMEC, said the joint ven­ture was de­lighted to be awarded this con­tract be­cause it had worked over the past two years to es­tab­lish it­self in the on­shore oil, gas and petro­chem­i­cal main­te­nance sec­tor.

Ben­nett said it was Clough AMEC’s first on­shore petro­chem­i­cal main­te­nance con­tract in Aus­tralia, with ser­vices to be pro­vided to one of the world’s largest liq­uid-am­mo­nia pro­duc­tion fa­cil­i­ties.

The scope in­cludes pro­vid­ing main­te­nance plan­ning sup­port, sup­ply­ing man­age­ment ser­vices, su­per­vi­sion, trades­peo­ple, tool­ing and sys­tems, in­clud­ing the Clough au­to­mated main­te­nance sys­tem (Cams), to per­form rou­tine main­te­nance ser­vices and shut downs at the Yara Pil­bara am­mo­nia and Tan plant.

Henry Laas, the group chief ex­ec­u­tive of M&R, said the group’s strat­egy re­quired that its ser­vice of­fer­ings pro­vided cov­er­age of clients’ re­quire­ments across the full project life cy­cle in all cho­sen re­gions.

Laas said that this pro­vided di­ver­si­fi­ca­tion ben­e­fits both in re­la­tion to geo­graphic risk and the spread of rev­enue, and earn­ings across all seg­ments or phases of the project life cy­cle.

“Clough AMEC’s main­te­nance con­tract win is a prime ex­am­ple of what we are work­ing to­wards achiev­ing across the group,” he said.

Ben­nett said the con­tract award val­i­dated the great work their peo­ple had done in de­liv­er­ing fit-for-pur­pose main­te­nance so­lu­tions that had a con­tin­u­ous fo­cus on iden­ti­fy­ing and im­ple­ment­ing cost-sav­ing op­por­tu­ni­ties and ex­ceed­ing op­er­a­tional per­for­mance goals.

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