RSH Awarded a SR 480 Million Contract in Papua New Guinea

Published May 2nd, 2010 - 09:29 GMT

Red Sea Housing Services (Tadawul: 4230), a world’s leading provider of remote site housing, has been awarded a new SR 480 million ($127.9 million) contract by Chiyoda-JGC Joint Venture (CJJV) to engineer, manufacture and construct a major housing facility for Papua New Guinea’s Liquefied Natural Gas Project (PNG LNG). Planned to be complete by the end of November 2011, the new facility aims to accommodate the workforce of the PNG LNG project being constructed at Port Moresby on the bay of Papua. The PNG LNG Project is operated by Esso Highlands Limited, a subsidiary of Exxon Mobile Corporation, on behalf of the co-venturers which include Oil Search, Santos, Nippon Oil, Mineral Resource Development Company (MRDC) and Eda Oil. 

Dr. Majid Al Kassabi, Chairman of Red Sea Housing Services (RSH), highlighted the importance getting this international contract which enhances the company’s credibility and goes in line with its operation strategy as a world market leader in manufacturing modular buildings, and a provider of a broad range of housing solutions for commercial and residential applications.

“We are pleased to have this opportunity to build a high-quality housing facility for the PNG LNG project. This reflects our reputed expertise and commitment to provide the best and durable housing solutions for such an international corporation as Exxon Mobil Corporation,” said Dr. Al Kassabi.

Don Summer, Managing Director of RSH, pointed out that awarding the new contract to RSH is based on the company’s reputation and craftsmanship spread out in different countries of the world, including Africa. “The accommodations and support buildings to be manufactured by RSH form another milestone for RSH as it is the fourth LNG facility we have been awarded to support such prestigious global corporations including Marathon Oil, Equatorial Guinea, Shell Oil, Qatar, Chevron Texaco, Angola, and now Exxon Mobile in PNG.” “This is singularly the largest contract we have secured outstripping the previous largest by SR 100 million, this contract represents 35% of total production of 2009” he added.

On his part, Glen Warren, Executive Vice-President of Marketing & International sales at RSH, stressed that the company has developed a unique team of highly qualified workers who became experienced in specialty projects, mainly after completing their previous project in Equatorial Guinea where the company created unique PVC composite panel buildings.

“Having the opportunity to work on this co-venture of highly-reputed global companies led by Esso Highlands Limited, a subsidiary of Exxon Mobil Corporation enhances our confidence as a world key leader in providing manufactured buildings, the same as we did on the successful building of Exxon Mobile pipeline from Chad through Cameroon to the Atlantic Ocean,” Warren noted, “The others construct camps, our team creates Micro Communities.” 

The major PNG LNG project includes gas production and processing facilities in the Southern Highlands and Western Provinces of PNG; liquefaction and storage facilities with a capacity of 6.6 million tons per year located northwest of Port Moresby on the Gulf of Papua, and over 700 kilometers of pipelines connecting the facilities. Upon completion, the PNG LNG is expected to produce over 9 trillion cubic feet of gas.

The project, to be developed according to the highest standards of HSE, will support the PNG government’s objectives to strengthen its economy and infrastructure for the benefit of its people.

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