London, 18 September 2012- Kentz Corporation Limited (LSE: KENZ), the holding company of the Kentz engineering and construction group, is pleased to announce the award of a shutdown services and operations support contract with Exxon Neftegas Ltd, within the Sakhalin 1 development project in Far East Russia.
The American oil and gas giant Exxon Neftegas awarded Kentz, The value of the contract is approximately US$50 million to Kentz and includes the provision of all personnel, equipment, transportation, procurement and front end execution planning, as well as the management of contractor and subcontractor resources.
This project falls under Kentz’s Technical Support Services global business unit and will be executed through its Russian joint venture operating company Kentz DEM LLC. The shutdown is scheduled to take place in July 2013 and will peak at a total workforce of approximately 600 personnel.
Kentz DEM LLC is a Sakhalin based company comprising of Kentz Russia LLC and DalelectroMontazh (DEM); a leading Sakhalin based engineering and construction services company for the oil and gas industry.
Kentz and DEM first cooperated together in 2004 under a strategic partnership agreement before officially incorporating their joint venture in 2008.
Michael Murphy, Chief Operating Office Technical Support Services for Kentz, commented: “Kentz is delighted to have been chosen again to support Exxon Neftegas with its second major shutdown on the Sakhalin 1 development, following the delivery of a very successful first shutdown in late 2010. Globally, our Technical Support Services business continues to grow and provide high quality, solution driven services to core clients such as ExxonMobil. We look forward to completing another safe and successful project for them with our partners DEM in Sakhalin.”