Chicago Bridge & Iron Co. (CBI) announced the approval by Esso Highlands Limited of a contract with CB&I in its joint venture with Clough, for the engineering, procurement and construction of the PNG LNG Project’s gas conditioning plant, pending final project authorizations. The estimated value of the contract is in excess of $1 billion. Esso Highlands, a subsidiary of Exxon Mobil Corp. (XOM), is the operator of the PNG LNG Project.
The contract scope includes the EPC work for the gas conditioning plant, nearby wellheads and associated piping and infrastructure, to be located in the Southern Highlands of Papua New Guinea. The work will be performed by CBI Clough JV, a joint venture between CB&I (65%) and Clough (35%). CBI Clough JV expects approximately 1,200 workers to be employed on this work during peak construction.
The PNG LNG Project is an integrated development that includes gas production and processing facilities, onshore and offshore pipelines and liquefaction facilities. Participating interests are affiliates of Exxon Mobil Corp. (including Esso Highlands Limited as operator, 33.2%), Oil Search Limited (29.0%), Independent Public Business Corporation (PNG Government, 16.6%), Santos Limited (13.5%), Nippon Oil Exploration (4.7%), Mineral Resources Development Co.(PNG landowners, 2.8%) and Petromin PNG Holdings Limited (0.2%).
Established in 1919, Clough is a publicly listed Australian based engineering, construction and asset support contractor providing full project life cycle solutions primarily to the Upstream Oil and Gas sector.
CB&I combines proven technology with global capabilities in engineering, procurement, fabrication and construction to deliver comprehensive solutions to customers in the energy and natural resource industries. It focuses on serving customers in the oil and gas, chemical and petrochemical, power generation, water and wastewater, and metals and mining industries. With more than 70 proprietary licensed technologies and more than 1,500 patents and patent applications, CB&I is uniquely positioned to take projects from conceptual design through technology licensing, engineering and construction, and on to final commissioning. The company’s major competitor is Matrix Service Co. (MTRX).
We currently have a Neutral recommendation on CBI.
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