UGL wins Gorgon maintenance contract

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Australian engineering group UGL has been awarded a five-year contract to maintain energy giant Chevron’s Western Australia gas assets.

UGL will undertake mechanical and electrical work on Chevron’s liquefied natural gas (LNG) project.

The announcement comes less than a week after Chevron revealed costs on its Gorgon project had blown out from $US52 billion to $US54 billion.

UGL expects work to begin on Gorgon, Australia’s largest gas project, in the first half of calendar 2014, and says the multi-million contract could be extended beyond the five-year term.

“We are very proud to have been selected by Chevron to provide maintenance services across the company’s portfolio of critical oil and gas assets in Western Australia,” UGL chief executive Richard Leupen said in a statement.

“Securing this contract reflects UGL’s position as a leading maintenance service provider to the downstream oil and gas industry in Australia and positions us well to be a key participant in the large pipeline of oil and gas maintenance opportunities in Australia and Asia as committed projects are brought on line, particularly in LNG.”