WorleyParsons Grabs $132m Bitumen Contract in Canada

By
Thursday, March 6th, 2014
liked this article
Embed
Autodesk – 300 X 250 (expire December 31)
advertisement
worley
FavoriteLoadingsave article

Australian engineering giant WorleyParsons has obtained a $132 million contract to provide its services to a bitumen refinery project in Canada.

Under the CND$130 million (AUD$132 million) contract, WorleyParsons will provide engineering and procurement services to the North West Redwater bitumen refinery project in Sturgeon County, situated to the northeast of Edmonton in Alberta near some of the resource-rich province’s key crude oil and diluent pipelines.

WorleyParons will commence work on the project immediately, providing its services via offices in Edmonton, Toronto and Mumbai.

The CND$8.5 billion Sturgeon Refinery is a partnership between North West Upgrading and fossil fuel giant Canadian Natural Resources, and is expected to be capable of processing 50,000 barrels a day once operation commences.

WorleyParsons is already extensively involved in Alberta’s hydrocarbon’s sector, working on a number of key projects in the areas of thermal heavy oil production and mineable oil sands for companies including Nexen, Devon, Suncor, StatoilHydro, MEG Energy, Total and Shell.

The company is currently working on three expansions for Shell’s Albian oil sands project, as well as the provision of major pipelines and related facilities for Enbridge, TransCanada Pipelines and Suncor.

News of the contract comes less than a week after WorleyParsons said it would conduct a review of its global operations in the wake of a near 30 per cent profit decline

Andrew Wood, WorleyParsons chief executive, said that the in-depth review was for the purpose of boosting the company’s future earnings potential, yet refrained from providing concrete details.

“We haven’t put limits on the review,” said Wood. “It really is looking at driving and setting the business up for future growth.”

Wood’s remarks triggered speculation about the possibility of further restructuring and retrenchments.

WorleyParsons saw net profit decline by 28 percent in the first half of the 2013/14 fiscal year, falling to $112 million from $155 million in the previous corresponding period.

The company imputed the profit fall to a decline in activity in the overall Australian resources sector, with oil, gas, minerals and metals, all hard hit, leading to a slump in related infrastructure construction projects.

Embed
FavoriteLoadingsave article

Comments

 characters available
*Please refer to our comment policy before submitting
Discussions