Premier Colin Barnett has welcomed today’s announcement from Chevron of a manufacturing contract going to a local steel fabricator located in Western Australia.
AGC has been awarded the contract to manufacture 7,500 tonnes of pipe spool for the Gorgon project.
AGC is a service provider to the oil and gas, mining and resources, power and maintenance industries. The company fabricates pipes, tanks, pressure vessels, structural steel and mechanical handling equipment.
“The awarding of this contract to a local manufacturer demonstrates that the local industry can be internationally competitive for appropriate work scopes and I congratulate AGC on their successful bid,” Mr Barnett said.
“Chevron’s Gorgon project is the biggest-ever resource project and has already delivered more than $9billion and 3,000 jobs to Australian industry, about 90 per cent of them right here in WA.
“These jobs are spread right through the metropolitan area of Perth - including the Kwinana area - in the Pilbara at Dampier and on Barrow Island and across Australia.
“Gorgon is expected to spend about $20billion on Australian goods and services in the next four to five years, and $33billion in the project’s first 30 years.
Commerce Minister Simon O’Brien said it was in everyone’s interest that there was a healthy and competitive local fabrication industry to support the resource industry.
“As the Gorgon project progresses, more and more local industry work will be required,” Mr O’Brien said.
“AGC have indicated they have the capability to undertake full scope of work for the Fabricated Pipe Spool package with significant Australian value adding.
“I congratulate Chevron, which has worked assiduously with Australian industry for more than five years to maximise opportunities for local industry to secure work on the project.”
The State Government intends to announce in the coming weeks a revised approach to local industry participation following an extensive review.
Premier’s office - 9222 9475
Commerce Minister’s office - 9213 6400