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Worley acquires Parsons E&C

On 7 October 2004, Worley announced that it had entered an agreement to acquire global engineering design group Parsons E&C Corporation for $US245 million ($A311 million).

Completion of the acquisition occurred in early November 2004 in Houston, Texas. Worley Group Chief Executive Officer John Grill said, “The successful completion of our acquisition of Parsons E&C is a significant milestone for Worley. The integration process is advancing well and I have personally visited all major Parsons E&C offices over recent weeks. The reaction of clients and staff has been without exception positive.”

Worley shareholders approved the special resolution to change the company name to “WorleyParsons Limited” at the annual general meeting on 15 November 2004. Australian Worley offices are now trading under the name WorleyParsons Services Pty Ltd. The combined entity now has 10,000 personnel in 59 offices spread across 29 countries.

WorleyParsons is now one of the few global companies with the resources and technical capabilities to meet the demands of large-scale resource projects. This is supported by the recent win of contracts for the PNG Gas Project and the Dampier to Bunbury Natural Gas Pipeline Expansion Project.

Esso Highlands, a subsidiary of Exxon Mobil, announced in December 2004 that Eos (a joint venture of WorleyParsons and KBR) had been selected to conduct the front end engineering and design (FEED) studies for the PNG Gas Project, which is now well underway in Brisbane.

The FEED team currently comprises around 40 ExxonMobil and other Project Owners’ personnel and will build further to 100-120 personnel from Eos.

Peter Graham, ExxonMobil’s PNG Gas Project Manager said, “We have selected Eos because this group has shown the capability to complete similar FEED work programs. Eos has assembled a solid team with experience on major oil and gas projects internationally and regionally within Australia and PNG.”

The activities in the FEED program include preliminary design for the gas field developments in PNG, gas processing and export compression facilities, infrastructure, and the PNG section of the gas pipeline from the Southern Highlands in PNG to the PNG/Australian border.

John Grill said “The award of the PNG FEED contract to Eos is the first major contract award for WorleyParsons in the Australasian region. It is an excellent example of the international recognition and capability strength that WorleyParsons now has attained. I believe it positions WorleyParsons very well for any future opportunities in the PNG Gas Project and other similar projects.”

WorleyParsons has also been awarded the FEED contract for the North West Shelf Venture’s Angel gas processing platform and a new pipeline to be connected to one of the existing 135 km offshore trunklines to the NWS Venture’s onshore gas plant near Karratha.

The latest success comes from NWS operator Woodside Energy, which has issued a Letter of Intent to a joint venture of WorleyParsons and Foster Wheeler for the engineering, procurement and construction management (EPCM) contract of its proposed Phase V LNG expansion project. The approximate value of the NWS Venture’s investment in this project is $A2 billion.

Meanwhile, EPCM work on the Stage 4 expansion of the Dampier to Bunbury Natural Gas Pipeline commenced last year in the WorleyParsons Perth office for Alinta Network Services. The scope includes installation of two further Solar Mars 100 compressors at compressor stations CS3 and CS9. The full scope of the DBNGP expansion is a further five compressors and sections of new pipeline to loop the existing pipeline and increase the overall capacity of the system.

WorleyParsons’ pipeline capability in South East Asia has been further enhanced by an agreement to purchase 100 per cent of the shares in Development Resources Pte Ltd (DRPL), the engineering and project services group of Singapore Power. The acquisition price is $S6.8million ($A5.2 million). DRPL has approximately 140 staff and provides a range of multi-disciplinary services to clients in the Singapore and regional distribution industries.

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