AWE Limited is delivering on its commitment to the economic development of the Mid West region by awarding service contracts totaling approximately $6 million to local Mid West businesses for Stage 1A of the company’s Waitsia Gas Project.
Four service contracts have been awarded, including pipeline construction, earthworks, concreting, and electrical and instrument installation. Work on site will commence in April 2016 and AWE is anticipating first gas will be produced from the Waitsia project in the third quarter of 2016.
AWE Managing Director Bruce Clement said these contracts demonstrate AWE’s long-stated preference to involve local operators in the project wherever practical, supporting the regional economy and communities. AWE is an established operator in the Mid West region and all of the company’s current production staff and contractors are locally based.
“Part of our commitment to being a good neighbour is to support local businesses. Awarding large value contracts locally is a reflection of the technical capability, competitiveness and cost efficiency of Mid West service providers. AWE sets high standards for its operations and the oil and gas industry in Western Australia demands the very best in quality, safety and efficiency,” he said.
In March 2015, AWE, in conjunction with the Mid West Chamber of Commerce and Industry, held a procurement workshop in Dongara to provide local suppliers and operators with the opportunity to ask questions about AWE’s forward plans and procurement processes, and to provide feedback.
The workshop was a huge success, attended by more than 80 representatives from local Mid West businesses, some of which have since been awarded service contracts.
In 2015, AWE invested more than $6 million in Mid West communities through wages, contracts and community partnerships. Including the new service contracts announced today, AWE’s total investment for 2016 is expected to be around $12 million.
The Waitsia gas field has the potential to produce approximately 10 per cent of Western Australia’s annual domestic consumption, providing significant additional investment in the Mid West and substantial royalties to the WA government over the project’s lifecycle.
If you have any questions about Stage 1A of the Waitsia Gas Project, please contact us.