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Home Asia Pacific

UGL to operate and maintain fuel terminal network of BP Australia

in Asia Pacific, News, Pipelines & Transport
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Australia based UGL has won a three-year contract from BP Australia for operation and maintenance of its 17 fuel terminals in the country.

Under the $190m contract, the operation and maintenance services will be provided through 50/50 joint venture between BP and UGL.

Under the terms of the contract, UGL through the JV will be responsible for engineering, maintenance and project operations throughout BP’s Australian fuel terminal network for an initial period of three years.

The contract includes provision for service extension for another three years on an ongoing basis.

The newly formed JV will also deal with the blending operations and loading and unloading of fuel for the BP customers.

Transition for the responsibilities has been initiated and is expected to continue for the next few months while entire management control of the network will be taken over from September this year.

UGL CEO Ross Taylor said: “UGL has enjoyed a longstanding relationship with BP since the 1990s providing maintenance services at BP’s Kwinana Refinery in Western Australia.

“We are very proud to extend our relationship with BP under this new major contract and play a role in supporting BP’s investment plans as it significantly expands its retail fuel network across Australia over the next three years.

“The contract is also strategically significant for UGL extending our capabilities to provide an integrated operations and maintenance solution in partnership with BP to optimise the performance of their assets.

“Securing this contract reflects UGL’s position as a leading asset services provider to the downstream oil & gas industry in Australia.

“Combined with UGL’s recent contract wins in LNG maintenance, we are well positioned to deliver solid growth in our base of recurring revenue streams from FY16.”

BP Australasia president Andy Holmes said: “UGL is an Australian industry leader in the provision of engineering, asset management and maintenance services.

“This combination of BP and UGL’s shared strengths and expertise will be very powerful in positioning the terminals and employees for future success.”

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