QGC, a BG Group company, said it will extend by three years the contracts of four regional Queensland providers of civil construction services following a competitive tender process.
The contracts, pending final execution, have been awarded to: Western Downs businesses Mike Jones Earthmoving of Wandoan and Ostwald Brothers of Dalby; Amcor Excavations of Moura; and Corbet’s Timber Haulage of Gympie. The work is collectively worth up to A$277 million, the company revealed in a statement.
Each contractor will have two crews and an average of 24 employees to undertake the construction and rehabilitation of well sites and road construction and maintenance.
QGC Managing Director Mitch Ingram said the tender was the result of detailed planning for the shift in focus from project to operations.
“The initial construction phase of the Queensland Curtis LNG project is nearing completion,” Ingram said. “As a result, the scope of works required for civil construction has been declining over the past two years. For example, the number of wells being developed each month has progressively fallen from 75 in 2013 and 50 in 2014 to an average of 25 this year.
Ingram added that consolidation of the civil construction work provides more consistent and substantial work opportunities for these businesses.
A total of nine incumbent companies were invited to participate in the private tender.
QGC said it will assist the unsuccessful businesses as they transition to the end of their current contracts in mid-2015. They will be offered support through QGC’s partnership with the Chamber of Commerce and Industry Queensland and local chambers to help them plan for their business.
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Image: BG Group