ASX Release | Contract Award – Upstream Production Solutions Northern Endeavour FPSO
GR Engineering Services Limited (ASX: GNG) (GR Engineering) is pleased to announce that its wholly owned subsidiary, Upstream Production Solutions Pty Ltd (Upstream PS) has been awarded a one year contract with the Department of Industry, Science, Energy and Resources of the Australian Government (DISER) to provide operations and maintenance and project services to the Northern Endeavour FPSO (FPSO) and associated infrastructure (the Contract) in preparation for a disconnection and removal of the FPSO.
As previously announced on 15 May 2020, Upstream PS had been engaged with the Commonwealth since mid-February 2020 to provide operations and maintenance services to the FPSO in a non producing state. The current contract is due to expire on 31 December 2020.
The term of the new Contract expires on 31 December 2021. Based on the current budget for core operation and maintenance services and planned pre-disconnection project activities, it is anticipated that revenue from the Contract will be approximately $130 million.
Commenting on the award of the Contract, GR Engineering’s Managing Director, Geoff Jones stated that:
“We are pleased to continue working with DISER and the relevant regulatory bodies to safely manage and maintain the FPSO and execute the required pre-disconnect preparation activities to support a safe removal of the FPSO in the future."
About Upstream PS
Upstream PS is a wholly owned subsidiary of GR Engineering Services Limited (ASX:GNG) with an extensive track record in the provision of operations, maintenance, projects and advisory services. The Upstream PS team has served the oil and gas industry for more than 20 years, with a strong reputation for providing safe, innovative and sustainable solutions to production challenges.
For further information please contact:
GR Engineering Service Limited
+61 8 6272 6000
Chief Executive Officer
Upstream Production Solutions Pty Ltd
+61 7 3239 5800