Clough and Saipem, in an equally shared (50/50) joint venture, have reached a new agreement with the client Perdaman Industries for the development of Perdaman Industries urea plant on the Burrup Peninsula, northwest of Karratha, on the coastline of Western Australia.
The agreement replaces the one previously announced on 30 December 2020 – which was removed from Saipem’s backlog at the end of March 2022 – and reflects the changed market scenario which has developed globally in recent months. The new contract value is around 2.7 billion USD (share of each JV participant 1.35 billion USD) with further risk and reward provisions to provide flexibility to manage any potential further deterioration in market conditions.
The contract effectiveness is subject to a Full Notice to Proceed to be issued by Perdaman Industries upon, among others, the closing of the Project Financing.
The scope of work includes engineering, procurement of equipment and materials, construction, pre-commissioning and commissioning (EPC) for the execution of a latest-generation fertilisers plant with a capacity of 2.14 million tons of urea per year.
The Saipem-Clough Joint Venture will collaborate with Haldor Topsoe, a leading technology provider using its cutting edge SynCOR™ technology to build the world’s largest single-line ammonia plant, while Saipem proprietary Snamprogetti Urea technology will be used for the urea production.