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MEDIA RELEASE
February 7, 2005
SAUDI ARAMCO CONSULTING DEAL TO BOOST
SERVICES EARNINGS CONTRIBUTION
The Clough group (ASX:CLO), in association with S&B from Houston and Al Bilad
from Saudi Arabia, in equal joint venture with Zuhair Fayez Partnership Consultants
(ZFP) from Saudi Arabia has been awarded a Project Management Services (PMS)
contract by Saudi Aramco of Saudi Arabia - the world’s largest oil producing company.
The PMS contract is for an initial period of five years with two, two-year extension
options.
Saudi Aramco currently produces around 9.5 million barrels of oil or oil equivalent per
day. Production is expected to increase to 12.5 million barrels of oil by 2010. A prime
requirement of this contract is to support Saudi Aramco’s current production capacity
along with its expansion plans.
Simon High, CEO of Clough’s Services Division said, “We are delighted to have been
selected by Saudi Aramco, from a list of the best global Oil & Gas contracting
companies, to support them with this very significant contract. We also look forward to
the challenge of undertaking the work “In Kingdom” (IK) and building a leading
contracting company based in Saudi Arabia. Being a long-term reimbursable contract it
fits well with the Services Division’s strategy and will be a major foundation of our
growth for many years to come.
“Whilst the contract does not specify any minimum amount of work, historically Saudi
Aramco has outsourced well in excess of six hundred thousand man hours per annum for
this services work. Our aim would be to build the local capability as quickly and
competently as possible, such that we can execute around 1 million man hours per annum
servicing Saudi Aramco and the existing client base in the region.
“We have already implemented a detailed mobilisation plan and will be recruiting several
hundred people using our regional centres in Indonesia, Thailand and India, in addition to
Australia.”
Mr David Singleton, CEO and Managing Director of Clough Limited said, “The Saudi
Aramco IK PMS is the most significant step taken in providing a balance in the group’s
order book in line with our strategic thrust of generating 50% of earnings from non lump
sum high risk contracts. It is undoubtedly our most important and impressive contract
win for some time.
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“The Saudi Aramco IK PMS validates our strategic decision to focus on growing the
Clough Services Division. It is a major success for the Services Division and
demonstrates the capability of Clough with a very exacting client.”
The Saudi Aramco IK PMS contract is being undertaken by, Al Bilad S&B Clough
Limited, a registered Saudi Arabian company. From this entity, Clough will take the lead
role for the execution of the services in conjunction with local consortium partner ZFP.
ZFP has a strong local presence and a long successful track record of working with Saudi
Aramco.
The consortium will act as the client’s project management consultants, performing
predominantly Front End Engineering and Design (FEED) and project management
consultant activities for onshore hydrocarbon extraction and processing facilities. All
works will be performed in Al Khobar, Saudi Arabia.
This contract follows on from Clough, last month, being awarded the pre-FEED contract
for the Gorgon Development as part of the Kellogg Joint Venture. In addition Clough
has recently established a “Design House” in Karachi, Pakistan to provide engineering
services for BP Pakistan Exploration and Production Inc over a period of three to five
years.
Further information: David Singleton
CEO & Managing Director, Clough Limited
Tel: (08) 9281 9281
Robert Ash
General Manager - Corporate Affairs, Clough Limited
Tel: (08) 9281 9404, 0407 778 296
E-mail: [email protected]
Website: www.clough.com.au
Clough is one of Australia’s largest multi-disciplinary engineering and construction groups.
Clough operates globally in industry sectors such as onshore and offshore oil and gas,
petrochemicals, minerals, infrastructure and property and has a significant capability in project
management and engineering.
If you wish to obtain notification of future Clough Limited press releases, please forward e-mail details to
[email protected]