$40m Timor gas project for Clough

Business Asia, March 3, 2000

Engineering company Clough Ltd says it has won a A$40 million contract on the Bayu-Undan natural gas project being developed by Phillips Petroleum in the Timor Sea.

The work, to be undertaken as a joint venture with the Norwegian company, Aker Marine Contractors AS, involves a floatover installation of the two major production decks on a platform positioned on the field which lies between Indonesia and Australia.

Clough said the work was the first major construction contract awarded on Bayu-Undan. Work is scheduled to start soon, with project completion expected in late 2003.

"The awarding of this first contract is great news for the entire (oil and gas) industry," said Clough managing director Brian Hewitt. Phillips is the operator of Bayu-Undan and has a 50.3 per cent stake in the project.

Its partners are Santos Ltd with 11.8 per cent, Indonesia's Inpex Sahul Ltd with 11.7 per cent, Kerr McGee Corp with 11.2 per cent, Petroz NL with 8.3 per cent and British-Borneo Oil & Gas with 6.7 per cent.

Production from the field, about 500km north-west of Darwin and 250 km south of Suai in East Timor, will bring revenues to Australia and East Timor under the Timor Gap treaty.