WDS Limited (ASX: WDS) has been awarded its largest single contract to date, worth $280 million with Australia Pacific LNG for the gas gathering works associated with 345 wells in Southeast Queensland.
The awarding of this latest contract demonstrates the continued growth of the Queensland Coal Seam Gas (CSG) sector, which WDS continues to invest in and win contracts.
The contract is valued at $280 million over three years and can be extended for a further four years via two extensions of two years.
The work scope is part of Australia Pacific LNG’s Upstream Project and includes site preparation works for 345 well lease pads, 280 kilometres of access tracks, 760 kilometres of gas and water pipelines, together with high voltage power distribution and fibre optic communication cabling.
Additionally, WDS will be installing and pre-commissioning all of the electrical and mechanical equipment associated with the 345 wells.
Mobilisation is anticipated in October 2012, with an expected peak workforce of 250 personnel.
The awarding of this contract will increase WDS’ workforce directly involved in CSG activities to more than 700.
Blue chip clients
WDS continues to net contracts with some of the largest mining companies around.
Earlier this month WDS secured a one year contract, worth $12 million, with BHP Billiton (ASX: BHP) for the provision of underground mine services at BHP Billiton Illawarra Coal’s Dendrobium Mine in the Illawarra region of New South Wales.
The company also recently inked a $24 million Construction Services Agreement with Santos (ASX: STO for the GLNG Upstream Project.
This particular contract marked nine years of service delivery by WDS to Santos. WDS has been working for Santos in the Fairview gas fields since 2003.
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