AWE Limited reports that the Front End Engineering and Design (FEED) process for the construction of Waitsia Stage 2 gas processing facilities and associated infrastructure north of Perth is nearing completion following the receipt of tender submissions.
A total of five tender submissions were received. Three reflect a traditional Engineering Procurement Construction (EPC1) approach while two utilise a Build Own Operate (BOO2) delivery model.
AWE has commenced a process to evaluate and compare each submission. The technology packages are being evaluated to optimise production and full life operational costs, with the overall submissions also reviewed for capital cost certainty and an efficient and cost-effective construction delivery method.
AWE’s CEO and Managing Director, David Biggs, said the Waitsia Stage 2 FEED phase was an excellent result and generated five quality submissions from local and international companies
“The process incorporated a six month design competition element which gave bidders the flexibility to work up advanced design and construction proposals,” he said.
“AWE has commenced the evaluation and comparison of the competing bids, which is expected to run through December. At the conclusion of the evaluation and comparison phase, AWE and its joint venture partner will be in a position to select the optimal delivery method for construction of Waitsia Stage 2 production facilities and associated infrastructure.
“The process will also provide the joint venture with capital cost certainty, which is a critical step towards establishing funding requirements and making a Final Investment Decision (FID),” Biggs concluded.
The Waitsia Joint Venture partners are: AWE Limited (via subsidiaries) (Operator) 50.0% and Origin Energy Limited (via Lattice Energy) 50.0%