Shell awards Prelude FLNG support vessels contract

February 12, 2014

Shell Australia has awarded a major contract for the design, construction and operation of three Infield Support Vessels (ISVs), which will create approximately 80 local jobs and support its Prelude FLNG Project, located 475km north-north east of Broome, in Western Australia.

KT Maritime Services Australia Pty Ltd (Joint Venture partnership of KOTUG and Teekay) will supply three 42 metre-long, 100-tonne bollard-pull Rotortugs to assist in product offloading during the operations phase of the project. The ISVs will operate out of the Port of Broome on a rotation.

“This is a very significant contract when it comes to the ongoing operation of Prelude FLNG, and our key priorities in awarding the contract were finding a partner who could deliver the vessels and services safely, and secure good local employment and training outcomes,” said Shell Australia Country Chair, Andrew Smith.

“This contract is an example of the long term benefits of Prelude FLNG. During the operations and maintenance phase we expect to spend at least $200 million per year on local content, this is a very positive level of investment into the Australian economy.”

David Parmeter, Director, KT Maritime said “To be part of Shell’s first deployment of Floating LNG technology is an important milestone for our business, and we look forward to supporting the Prelude FLNG development throughout its operations.”

“This joint partnership combines the technical innovation and expertise of KOTUG, with Teekay’s experience as a marine operator in Australia.”

Fellow KT Maritime Director Ard-Jan Kooren said “We are proud to be working with Shell Australia in pioneering FLNG technology, and look forward to changing the game together over the decades ahead.”

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Press Release, February 12, 2014