Asset management firm Transfield Services has won a $1.2 billion contract to provide garrison and welfare services over a 20-month period at Australia’s offshore refugee processing centres on Nauru, and Manus Island in Papua New Guinea.

Transfield Services said on Monday that it had received a formal Letter of Intent from the Commonwealth of Australia for the award of a contract.

On Manus, Transfield will sub-contract security services to Wilson Security, as it has on Nauru.

“Transfield Services has considerable experience in this type of work, having been on Nauru since the centre there was established and before that, providing similar services at Defence facilities across NSW, Victoria, South Australia and Western Australia,” Transfield chief executive Graeme Hunt said.

Transfield shares were 13 cents, or 16.35 per cent, higher at 92.5 cents at 1053 AEDT.