GR awarded offshore oil field contract

GR Engineering Services has won a $90 million contract to operate and maintain a floating production storage and offloading facility in the Timor Sea for Northern Oil & Gas Australia.

GR Engineering’s wholly-owned oil and gas services business, Upstream Production Solutions, has been contracted to operate NOGA’s Northern Endeavour FPSO, which is currently in service at the Laminaria-Corallina oil field in the Timor Sea.

Under the contract, which has an initial three-year term, Upstream PS will provide onshore and offshore operations and maintenance services to NOGA, with a commencement date to be finalised within a week.

The Perth-based company expects to generate $30 million in revenue per year from the contract.

Upstream PS managing director Joe Corvetti said the contract win was a significant milestone for the business and an opportunity to continue expanding its offshore capability.

“This contract also complements our existing portfolio of operations and maintenance, engineering and production assurance services engagements across Australia,” he said.

GR Engineering managing director Geoff Jones said the contract award demonstrated the ability of Upstream PS’s management to grow the business and play an important role in the group’s diversification strategy.

NOGA recently acquired the Laminaria-Corallina oil field and with it the Northern Endeavour facility, which has been the oil field’s production vessel since 1999.

GR Engineering shares were 2.2 per cent higher to 91.5 cents each at 10:30am.