(GoM, Asia-Pacific) - Australian engineering group, Clough Ltd. has entered into an agreement with Apache Corp. to supply the specialist subsea construction vesselNormand Clipper for an initial term of two years.
Clough says the vessel will be deployed in the GoM and will generate revenue of approximately $29.6 million per year.
Clough's scope of work is to provide the subsea construction vessel, associated logistics, and engineering support to perform subsea work for Apache in the GoM.
The two-year agreement begins in March 2006 and may be extended at Apache's option for up to four additional periods totalling 15 months.
David Singleton, CEO and managing director of Clough Ltd., says, "This award is an integral part of our strategic thrust to focus on areas of differentiation, in this case subsea projects.
"Our decision to take a long term charter of theNormand Clipper has proven to be instrumental in winning this work in the USA."
In May 2005, Clough charteredNormand Clipper for six months beginning December 2005 to carry out SURF installation on the G1/G15 project in India.
Clough recently exercised a three-year extension option, which begins in June 2006.
Stephen Rogers, CEO of Clough's Oil & Gas Business Unit, says, "This Apache project will generate a strong and consistent earnings stream for the Oil & Gas Business Unit, with positive cash flow.
"As the contract is rates-based, Clough does not assume any lump-sum risk.
"This contract continues and builds upon the long-term relationship Clough has with Apache in Australia and more recently overseas in the North Sea."
Clough has worked on a number of Apache-controlled facilities since 1984, including the Varanus Island second trunk line project, Agincourt pipeline installation, Linda pipeline, East Spar development, Wonnich field development, and the Victoria & Double Island project.
In 2004, Clough completed the Forties riser replacement project in the North Sea for Apache.
The contract was signed by Clough Ltd.'s subsidiary company Clough Regional Pty Ltd.
02/22/06
