Clough deal with Devil back on

Under the contract, Clough will carry out the engineering, design works, procurement of all permanent materials and equipment as well as fabrication and assembly of all modules for the facility.“We are pleased to be re-engaged by Apache and look forward to working closely with them to realise the Devil Creek development project,” Clough chief executive officer John Smith said.The new agreement is a reimbursable style of contract with options to increase the scope of work based on mutual agreement between Apache and Clough.Clough’s original contract for the plant was terminated in December last year after Apache and Santos decided to put the development of the Reindeer gas field offshore Western Australia and the associated Devil Creek plant on hold, due to delays in the execution of the foundation gas sales agreement with CITIC Pacific.The project was revived just a month later after CITIC committed to buy 154 billion cubic feet of gas over seven years from the second half of 2011 for its Sino Iron magnetite mining project at Cape Preston.The gas will be used to feed Sino Iron’s 450-megawatt power station, currently under construction.Reindeer is located in the offshore WA-209-P, which is operated by Apache (55%) in partnership with Santos (45%). The field was discovered in 1997 and has a gross recoverable resource range of 410-640 petajoules (390-610 billion cubic feet) of gas. Reindeer is expected to produce about 215 terajoules (202.7 million cubic feet of gas) per day.Gas will be piped 105 kilometres to Devil Creek, about 45km southwest of Dampier, for WA’s domestic gas market.

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