Western Australian-based mining services provider Monadelphous will take control of INPEX’s $75m a year on-shore maintenance contract under a deal flagged on Wednesday morning.

About 400 employees at Inpex’s Middle Arm LNG processing plant will change boss next month if the proposed amendment to Inpex’s onshore maintenance contracts goes ahead. Shift changes at the worksite are also on the table.

The new agreement will follow the termination of Inpex’s contract with Trace, which has had the company’s onshore maintenance contract since 2017.

Workers were informed of the change during a town-hall meeting at Inpex’s Bladin Point site.

All existing Trace employees will have the option of shifting to Monadelphous.

Monadelphous announced it had received a letter of intent from Inpex to vary its existing maintenance services contract.

It said the $75m variation would add to the company’s scope of work under the 2017 agreement with Inpex, that was extended in May.

If approved, Trace’s contract would expire on November 22 and be assumed by Monadelphous the following day.

In its ASX statement, Monadelphous said the existing contract included operational, campaign and shutdown maintenance services at Inpex’ offshore facilities in the Browse Basin in Western Australia.

“The variation, which is valued at approximately $75 million per annum, will add to the company’s scope of work under the existing contract to include the provision of similar services at the Inpex-operated Ichthys LNG onshore processing facilities at Bladin Point in Darwin, Northern Territory,” the statement said.

“Monadelphous is working closely with INPEX to finalise the terms of the variation.”

Monadelphous has been operating in the Northern Territory since 1993, opening a Darwin workshop in 1994 and operating out of the Gove alumina refinery and bauxite mine from 1996.

Monadelphous’ Darwin workshop was upgraded in 2019 to support contracts with Inpex and Shell.

In addition to the Ichthys project, Monadelphous has been involved with developments including ENI Blacktip, Union Reef gold mine, Argyle diamond mine and the Tanami Granites mine site.

Source: NT News