Leighton Asia News, July 2005 - Leighton Holdings

Difficult conditions
overcome at massive
LNG project
Leighton’s success on the preliminary stages of the Tangguh LNG project in West Papua,
Indonesia, has resulted in the company securing a new US$40 million contract for the
construction of a permanent camp at the project.
Under the new contract for JGC/PT
Brown and Root Indonesia Joint
Operation, Leighton will design and
construct a camp providing
accommodation and facilities for 5,500
personnel. Leighton’s scope includes all
buildings, furniture, equipment, services
reticulation, roads, fencing, walkways and
recreational facilities.
Work on the project will commence
immediately and is due for completion
in July 2006.
Fabrication of the buildings is being
undertaken at Leighton’s own facility
in Jakarta.
Leighton has already completed two
smaller camps – worth approximately
US$10 million – at the same project.
The initial camp went into operation in
December 2004, and the second camp
in May this year.
In addition, the company secured a
US$30 million contract in December last
year for the site development, including
earthworks, roads and landscaping, for
the LNG plant. This is due for completion
in November.
All four projects form part of the
consortium’s EPC contract with BP Berau
for a 7.6 million tonnes per annum LNG
plant. The plant will be constructed over
a period of four years. With a total value
of US$2 billion, it is one of the largest oil
and gas projects under construction in
South East Asia.
The key to Leighton’s success has been
its ability to mobilise temporary facilities,
personnel and materials to an extremely
remote site with no landing facilities, and
in an area where the tide recedes up to
500 metres at low tide.
The site lies within Bintuni Bay in the
North West of West Papua. This is a
greenfield beachhead site, with no
infrastructure and no road access. The
nearest airstrip is approximately one hour
by speed boat from the site.