Engineering and construction company Clough Limited (ASX:CLO) has received a Letter of Intent for a contract valued in excess of A$250 million (US $254 million) to the Clough DORIS Joint Venture (CDJV) for the provision of Offshore Integrated Project Management Support Services (IPMS) for the Ichthys LNG Project.
CDJV is a 50:50% joint venture between Clough and French offshore engineering specialists, DORIS Engineering.
The commencement of work is subject to execution of a binding contract and a Final Investment Decision (FID) for the Ichthys LNG Project by the joint venture participants, INPEX and Total. It includes overseeing, in an integrated team with INPEX, the detailed engineering design, procurement, fabrication, at-shore commissioning, tow to site, and offshore hook-up of the Central Processing Facility (CPF) and floating production, storage and offloading vessel (FPSO) for the project.
Under this Letter of Intent, pre-FID expenditure is limited for CDJV to the commencement of activities required to mobilise a technical team of engineers to support the Ichthys Project. It is anticipated that this team will grow to approximately 300 personnel during the fabrication phase of the project. Full mobilisation is due to commence immediately following FID for the Ichthys Project scheduled for Q4 2011.
The Ichthys LNG Project is a Joint Venture between INPEX (76%, the Operator) and Total (24%). Gas from the Ichthys Field, in the Browse Basin approximately 200 kilometers offshore of Western Australia, will undergo preliminary processing offshore to remove water and extract condensate. The gas will then be exported to onshore processing facilities in Darwin via an 885km subsea pipeline. The Ichthys Project is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of LPG per annum, along with 100,000 barrels of condensate per day at peak.
Clough-DORIS JV wins $254MM in Ichthys LNG work offshore Australia