Clough wins $25m expansion contract with Apache

Engineering and construction company Clough Ltd has been awarded a $25 million contract by Apache Energy for the Mars Phase 2A Project located on Varanus Island.

The contract follows Clough's recent successful completion of the associated FEED and engineering phases.

The scope of work is for the installation of an additional solar compressor with associated pipe work and instrumentation on the existing Varanus Island plant in Western Australia's Pilbara region.

The work is due to be completed in October 2008.

"Clough has a long history with Apache for work on various Australian and international projects and was part of the consortium that developed the Varanus hub back in the 1990s," said Clough chief executive John Smith.

"We were able to negotiate this contract, following the success of the early phases, due to our knowledge of the plant, availability of the right construction led engineering team and being able to quickly mobilise that team to meet Apache's schedule, quality and safety requirements."

This award enables Clough to continue to develop its ongoing relationship with Apache, which is a strategic exploration and production client with significant domestic oil and gas production facilities and permits in Australia.

The contract type is target cost with some lump sum elements.