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WDS wins GLNG contract

LNG Industry,

WDS Limited (WDS) (ASX:WDS) announced today that its Energy Division has won contract work with a total value exceeding US$ 50 million for delivery in the current financial year.

Two of the contracts are with Santos Limited (GLNG Project) and Vale (Carborough Downs Coal Mine), both of which are long standing clients.

GLNG Project:

WDS is celebrating ten years of service delivery to Santos Limited with the rollover of the Construction Services Agreement for Appraisal and Pre Development services for the Gladstone Liquefied Natural Gas (GLNG) Project.

WDS’ Energy Division will be a Principal Contractor to the GLNG Project and will carry out field installation of appraisal gathering systems for the connection of Coal Seam Gas (CSG) wells in GLNG’s Surat Basin gas fields. WDS’ work scope is multi-disciplined and will include civil, mechanical, electrical, and instrumentation aspects of the management and construction of field and trunk pipelines and CSG wellhead connections.

Drilling services for Vale’s Carborough Downs Coal Mine:

WDS Energy Drilling & Completions has been awarded a contract for surface to in-seam directional and vertical drilling for gas drainage and associated services at the Carborough Downs Coal Mine in the Bowen Basin. The contract includes works for drill pad preparation, vertical production wells, surface to in-seam wells, wire-line logging and the supply of casing and cementing services over an eight-month period. The drilling and completions team have deployed one rig on this contract and expect to deploy a second rig before the end of October. WDS has undertaken drilling projects for the Carborough Downs Coal Mine for a number of years. This new project strengthens the long-standing relationship between WDS and Vale.

WDS Managing Director and CEO Terry Chapman said: “These two contracts continue our strong client relationships and delivery performance across the coal seam gas and coal sectors. In addition, our energy business has received contracts for wellhead lease and gas compression fabrication works for both Arrow Energy and QGC, as well as a 12-month extension of the lease to Fluor of its 265 room Fairview Construction Camp.”

Chapman continued: “These contracts exceed US$ 50 million in contract value and will all be delivered over the current financial year. This lends further strength to our forecast of modest growth in profit for FY14, as indicated to the market at our full year results announcement in August.”

Adapted from press release by Ted Monroe

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