Our Wheatstone Project will reinforce Australia as an expanding and reliable supplier of clean, natural gas for the 21st century.
With construction now underway, local businesses are already benefitting from one of Australia's largest resource projects. Estimated to create 6,500 direct and indirect jobs during peak construction and spend $17 billion on Australian goods and services over the life of the project, Wheatstone is a real success story for Australia.
Committed to the Local Australian Industry
Since construction began in late 2011 the Wheatstone Project has committed over $8 billion dollars in services and supply contracts to Australian businesses. Often, there is a further spin-off to the local economy with sub-contractors of main contract winners also gaining new supplier opportunities.
Local Henderson-based company, Matrix Composites & Engineering, recently entered into an agreement with Allseas for the supply of rigid pipeline installation buoyancy for the Chevron-operated Wheatstone Project. Matrix will supply 70, four-tonne installation buoyancy assemblies which will be manufactured at the company's new 20,000m2 composites syntactic foam plant in Henderson, Western Australia.
The contract will support the local manufacturing industry and 225 local jobs in Henderson, Kwinana and Rockingham.
There are many examples of local partnerships resulting in subcontract opportunities. Other Australian companies which have won contracts related to the project:
Air Services
Skywest Airlines will fly Wheatstone Project construction workers between Perth and Onslow for the next six years.
Skywest is initially planning to use a 50-seat aircraft, increasing to a 100-seat aircraft in 2015. It is anticipated that Skywest will complete approximately 2,400 flights during the six years of the contract.
Construction Management Services
Australian Stock Exchange listed company WorleyParsons will provide construction management services for the Wheatstone Project. The contract is valued at approximately $235 million.
The contract will create a significant number of local jobs directly for WorleyParsons as well as local job and training opportunities for its contractors.
Construction Village
Leighton Holdings subsidiary John Holland will carry out the design and construction of 12 permanent buildings essential to the operation of the Wheatstone Project onshore gas processing facilities. These include an operations building, laboratory, maintenance centre, vehicle maintenance shop, fire station and plant warehouse. Six other smaller ancillary buildings will also be constructed. The contract is valued at approximately $240 million. About 340 direct jobs are expected to be created to complete the permanent buildings work. Local suppliers and specialist contractors will have the opportunity to provide goods and services.
The contract will also provide economic development opportunities for local Aboriginal people.
Construction, Operation Support and Other Services
The construction general services contract awarded to Australian engineering company Monadelphous Group is valued at approximately $70 million. The contract is expected to generate significant opportunities for local employment.
Design and Construction of LNG Loading Facility and Tug Berths
The BAM Clough Joint Venture is responsible for designing and constructing a 1.2 kilometre jetty with operations platform, a product loading platform and associated piping modules and a tug berth. At peak, the contract will result in approximately 200 Australian jobs. The estimated value of the contract is $400 million.
Diesel Coalescers
Perth-based steel fabricator, Modular Engineering will supply diesel treatment equipment to Daewoo Shipbuilding & Marine Engineering - the Wheatstone Platform Engineering, Procurement, Construction, Installation contractor. The equipment decontaminates diesel before it's stored for use on the offshore platform, enhancing performance and extending the life of the platform equipment.
While it's Modular Engineering's first contract award on the Wheatstone Project, the company - which employs 22 people - has supplied numerous equipment packages to primary contract winners on the Chevron operated Gorgon Project. Along with the initial fabrication work, Modular Engineering will also supply consumables throughout the equipment's operational life including replacement filters, seals and gaskets - all stocked locally in Perth.
Electrical Control and Distribution
Perth-based Schneider Electric will supply an electrical control and distribution network solution for the Wheatstone Project. The contract will see the majority of the work completed in Australia and will support over 230 Australian jobs, with around 143 located in Perth. The contract value is estimated at $189 million.
Fabrication and Construction
Australian based Civmec Construction and Engineering Pty Ltd has secured contracts in relation to the Wheatstone and Gorgon Projects with Best JV and CB&I Kentz Joint Venture (CKJV) respectively. Under these agreements Civmec expects to create 90 additional West Australian jobs. The combined value of the contracts is approximately $39 million.
Fly Camp
Decmil Australia won the $70 million contract to design, supply and install a fly camp and associated facilities for the Wheatstone Project.
The Osborne Park-based company will supply the 502-room fly camp, kitchen and dining facilities, medical facilities, wet mess, recreational facilities, wastewater treatment plant, and support utilities.
In delivering the project, Decmil will field a team of approximately 100 people.
Jacking Pipe Segments
Perth-based Georgiou Precast has been awarded a contract to provide jacking pipe segments by Thiess for construction of the micro tunnel at the Chevron-operated Wheatstone Project.
The contract, which will see the majority of the work undertaken at Georgiou premises in Malaga near Perth, will support 10 local jobs.
Materials Offloading Facility and Breakwater
Australian-based company Thiess formed a strategic partnership with Belgian company BESIX SA to establish local capability and the sharing of international best practices and technology transfer. Together, they will develop the breakwater and materials offloading facility (MOF) for the Wheatstone Project.
It is anticipated that the project will create more than 300 new jobs, with the majority of this new work based in Onslow. In addition, 80 percent of the work under this contract will take place in Australia.
Medical Services
Aspen Medical will provide medical services during construction of the Wheatstone Project onshore facility.
The contract incorporates the diagnosis and treatment for primary care, emergency medical services and on-site medical assessments for the construction workforce, with 100 percent of the work under this contract being conducted in Australia - predominantly in Onslow. The estimated value of the contract is $36 million.
Microtunnel Construction
Thiess has won a $58 million contract to construct a 1.2 kilometre long tunnelled shore crossing under the ocean which will connect two offshore gas reserves with Wheatstone LNG and domestic gas plant at Ashburton North.
The shore crossing micro-tunnel will be 2.5 metres in diameter and will be delivered by a tunnel boring machine and lined by the pipe jacking method. Thiess have given a commitment to engage local suppliers and subcontractors which will in turn will boost local employment and training opportunities.
Network and Telephony Systems
Dimension Data Australia has secured a contract for the design and design assurance of permanent network and telephony systems for the Wheatstone Project. The contract will see the majority of the manufacturing work completed in Australia and will create new jobs to add to its Perth operations.
Offshore Hook-up and Commissioning
Australian based engineering and construction company Clough Limited has been awarded a $350 million contract for the offshore hook-up and commissioning component of the Wheatstone Project..
The services will be provided over a 40-month period. The agreed scope of work includes the provision of labour, materials and an accommodation support vessel to assist Chevron with pre-commissioning, commissioning of integrated float over deck systems, offshore hook-up, and start-up assistance. At peak, Clough expects it will employ a workforce of more 300 people to complete the work.
Offshore Pipeline and Subsea Construction
Perth-based AGC Industries Pty Ltd (AGC), has been awarded a supply and fabrication contract for offshore pipeline and subsea construction for the Wheatstone Project.
The contract will create at least 65 local jobs with the fabrication works for the project to be completed at AGC's Kwinana facility and the Australian Marine Complex (AMC) in Henderson.
Piling Supply and Installation
Keller Australia Group has secured a key contract with Bechtel Australia Pty Ltd worth approximately $186 million for the piling installation for the Wheatstone Project. The work will be led by Frankipile Australia, part of the Keller Australia Group.
Included in the scope of work is the procurement, installation and testing of approximately 20,000 piles for the onshore main plant facilities. Keller Australia is committed to utilising its Australian-based plant and management, with any additional labour requirements sourced locally.
Site Clearing and Preparation
Australian based company Thiess will undertake the earthworks for the plant, storm water drainage system and access roads around the Wheatstone Project. The contract is expected to create 400 Western Australian jobs. The estimated value of the contract is $450 million.
Structural Engineering and Civil Works
Laing O'Rourke has been awarded a major structural engineering and civil works contract on the Wheatstone Project. The contract, valued at over half a billion dollars, will directly employ up to 700 people.
Transformers
Wilson Transformers will supply transformers and neutral earthing resistors to the Wheatstone Project. Wilson Transformers is the first Australian firm to become a qualified global supplier of electrical equipment to Chevron. The estimated value of the contract is $21 million.
Vehicle Fleet Hire
Raw Hire is a Western Australian based company located in the Pilbara region. Raw Hire delivers local and WA state-wide vehicle hire solutions for the mining and resources, construction and industry sectors. Raw Hire provides cars, light commercial vehicles, 4WDs, buses, trucks and fully equipped custom vehicles.
Easifleet is a Western Australian based company which will supply the Wheatstone Project with leased vehicles for use in and around the town of Onslow. As an independent local business, Easifleet supports other Australian companies including Onslow small businesses engaged for ongoing servicing and maintenance. Easifleet embraces the principles of business sustainability and regional policies and is a significant contributor to the local economy.
Local Supplier Opportunities
The majority of the work under these contracts will be carried out in Western Australia, including a significant proportion in Onslow, creating employment and sub-contracting opportunities. Chevron will continue to work closely with their contractors, government and regional stakeholders to enhance local employment and training opportunities, in addition to opportunities for small business to participate in the project.
ProjectConnect provides a full list of contracting and supply opportunities on the Wheatstone Project.
Bechtel, the engineering, procurement and construction contractor for the Wheatstone Project recently opened a jobs facility in Perth to support the employment of 5,000 construction positions on the project. Further information on the available positions can be found on the Bechtel recruitment website.
Chevron Australia is committed to local supplier opportunities and active support for Australian industry participation is one of the project's core business philosophies.
On-going Benefits for the Australian Economy
As impressive and economically stimulating as the huge capital investment in the Wheatstone Project and Gorgon Project is, that is not where the majority and enduring benefits will be derived.
It is the 40 to 50 years of continuous operations that will generate the great wealth to Australians - the ongoing operations and maintenance jobs, the scores of support services, the development of niche technologies, not to mention the billions of dollars in company and income tax and royalties that will flow into government coffers each year. And, beyond construction, the focus will move to higher skilled long-term jobs in LNG and domestic gas plant operations, maintenance and logistics support, along with continuing exploration and appraisal to support expansion of facilities once established.
Both the Wheatstone and Gorgon projects will provide critical mass in Western Australia and the nation to stimulate research and development in areas such as petroleum production, health and safety, gas processing technologies, CO2 management, sub-sea technology and environmental management. It is this longer term investment in people and technology, along with the ongoing jobs and billions of dollars that will flow into the State and national economies over the next 40 to 50 years that are the real benefits of mega projects like Wheatstone and Gorgon.
| Ongoing summary of Wheatstone Project contracts awarded to Western Australian based, Australian based and overseas companies |
| Period | Number of Wheatstone Project Contracts Awarded |
| Western Australia | Other Australian | Overseas | Total |
| Cumulative to 30 September 2011 | 21 | 9 | 41 | 71 |
| October to December 2011 | 39 | 15 | 52 | 106 |
| Cumulative to 31 December 2011 | 60 | 24 | 93 | 177 |
| January to March 2012 | 27 | 7 | 46 | 80 |
| Cumulative to 31 March 2012 | 86 | 33 | 138 | 257 |
| April to June 2012 | 10 | 16 | 34 | 60 |
| Cumulative to 30 June 2012 [1] | 96 | 45 | 176 | 317 |
| July to September 2012 | 8 | 7 | 15 | 30 |
| Cummulative to 30 September 2012 | 104 | 52 | 191 | 347 |
[1] Please note: Following a reconciliation of awards, cumulative to 30 June 2012 figures have been adjusted to take into consideration 5 awards not previously reported and 5 awards reported twice.