Australia: Wheatstone Dredging Contract for Great Lakes

Wheatstone Dredging Contract for Great Lakes

Great Lakes Dredge & Dock Corporation announced its participation with DEME in the Wheatstone LNG Project dredging works in Australia.

Dredging International (Australia) Pty Ltd, a member of the DEME Group, has been awarded a subcontract to dredge the approach channel, the maneuvering area and the berths for the Chevron-operated Wheatstone Project near the town of Onslow, located along the Australian north-west coast. The subcontract was awarded by Bechtel Australia Pty Ltd to Dredging International (Australia) Pty Ltd and will be executed in cooperation with Great Lakes. The work includes dredging more than 26 million cubic meters of material and the work will be executed under strict environmental conditions.

The total subcontract represents a value at today’s currency exchange rates of about AUD 1.13 billion (about $1.21 billion), of which Great Lakes will perform mechanical dredging on the project. Great Lakes currently expects to realize approximately $180 million in revenue on this project with the potential for greater income once we finalize our participation.

The subcontract will create more than 350 jobs at peak, including 70 in Western Australia, 40 in Pilbara region and 90 throughout Australia. It will also involve business based in Onslow.

Great Lakes will mobilize its backhoe dredge, New York, two 5,000 cubic yard material barges, tug boats and ancillary support equipment to Western Australia to assist in the excavation of clay and rock to create the access to the Wheatstone material offloading facility and the approach channel. The Great Lakes portion of the project is expected to take about 27 months to complete.

David Simonelli, President of Dredging Operations, said “Great Lakes is pleased to be participating in the Wheatstone Project with our dredge New York which is ideally suited to perform in this environment. DEME and Great Lakes have a long history of joint venture and sub-contract cooperation, and we look forward to partnering with Chevron and Bechtel to successfully complete the Wheatstone Project. Our dredge New York will enjoy solid utilization for more than two years. We expect to commence mobilization to the Wheatstone Project in the third quarter of 2012, following the completion of our other contract obligations for the dredge New York.”

LNG World News Staff, February 14, 2012; Image: Chevron

 

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