March 28, 2002
It's official: Kiewit gets Marystown
Beaton Tulk, Newfoundland's Minister of Industry, Trade and Rural Development, announced today that there is a new owner for the Marystown shipyard and Cow Head offshore fabrication facility, and that these facilities will play a major role in the $2.3 billion White Rose oil field project that has now been formally sanctioned by Husky Oil and Petro Canada.
Peter Kiewit Sons (PKS), headquartered in Omaha, Nebraska, and one of North Americas largest construction and fabrication firms, has purchased the Marystown facilities from Friede Goldman Newfoundland.
PKS is also a partner with Aker Maritime Kiewit Contractors, which was awarded the topsides fabrication contract for the White Rose project today concurrent with the announcement by Husky Oil and Petro Canada that White Rose has now been formally sanctioned.
The Marystown facilities will play a major role in the White Rose project, Tulk said at a news conference in Marystown this morning. "The purchase of the yard by Peter Kiewit Sons immediately removes the difficult circumstances that have impeded the ability of the Marystown yard to operate normally for the past year," Tulk said in reference to the fact that Friede Goldman Newfoundlands parent company was placed in bankruptcy protection in the United States last year, a situation that created a "difficult and uncertain year for the shipyard and its workers."
In addition to the royalties that will flow from White Rose, the project owners have made a firm commitment to undertake within the province more than 80 per cent of the development phase work that can be reasonably done in Newfoundland and Labrador on the Floating Production Storage and Offloading vessel. The owners have also made a firm commitment to undertake more than 80 per cent of all production phase employment in Newfoundland and Labrador. Husky and Petro Canada have also committed to make every effort to improve upon these levels of provincial participation in keeping with the spirit and intent of the Atlantic Accord.
Marystown will play a major role on the topsides fabrication and installation work for the White Rose Project. It will carry out all of the installation and integration activities for the topsides and will be responsible for almost 60 per cent of the total topsides fabrication work for the entire project. St. Johns and hopefully Bull Arm will also play an important role on fabrication of the topsides. White Rose work at Marystown is expected to create employment opportunities for 500 to 600 workers at peak times over the next two years or so.
Tulk said that in addition to White Rose work, existing activity being carried out at Marystown, including work on the MV Captain Earl Winsor, will continue under PKS ownership.
The ownership change will also allow the yard to start bidding on new work, Tulk said, noting that Hull 100 will soon go to tender. The province is also committed to a longer term ferry replacement program.
"Our immediate plans are to undertake a major portion of the fabrication and assembly of the topside modules in Cow Head and the Shipyard, and to carry out the integration of the modules on the FPSO deck at Cow Head," said Frank Smith, Director of Business Development, Peter Kiewit (PKS). "Our longer-term plans are to aggressively pursue the offshore fabrication market in Eastern Canada as well as maintaining Marystowns shipbuilding and repair activities."
"AMKCs contract with Husky Energy is the first offshore project undertaken in Newfoundland at a fixed price, which requires a facility and workforce capable of working to high quality and productivity levels," said Smith. "We see our ownership of the Marystown facilities as the future cornerstone of our East Coast fabrication activities," explained Smith.
PKS has been active in Newfoundland since the early 1990s, including the fabrication and installation of the modules for the Hibernia GBS Utility Shaft, co-management of the Hibernia GBS concrete construction and the Design-Build of the second finger pier at Whiffen Head.
Peter Kiewit Sons Co. Ltd. is the Canadian operating arm of the Kiewit Construction Company (KCC). PKS is headquartered in Toronto, Ontario, with offices in Vancouver, Edmonton, Montreal and St. Johns. It has operated continuously in Canada since the 1940s. Today, it is one of Canada's largest contracting organizations performing work in most market sectors including civil, oil and gas, power, process, industrial, transportation, mining, buildings and water resources. Its parent company, Kiewit Construction Company is headquartered in Omaha, Nebraska, U.S.A., and has grown steadily to become one of the largest construction companies in North America today. Established in 1884, the Company has recent annual construction revenues over US $4.0 billion, employs more than 18,000 people and is consistently ranked among the top 10 contractors in North America.
Currently, AMKC, a joint venture between Peter Kiewit Sons Co. Ltd. and Aker Oil & Gas Technology Canada Limited, has been awarded the Engineering, Procurement, Construction and Integration (EPCI) contract for the White Rose topsides, with PKS as the majority partner and primarily responsible for the fabrication and installation.