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Last updated on April 19, 2014 at 13:20 EDT

ShawCor secures a second pipe coating contract for the Ichthys LNG project

June 29, 2012

(TSX: SCL.A, SCL.B)

TORONTO, June 29, 2012 /PRNewswire/ – ShawCor Ltd. (TSX: SCL.A, SCL.B) today
announced that its pipecoating division, Bredero Shaw, has received a
contract with a value in excess of US$100 million from McDermott
Australia Pty. Ltd. to provide pipeline coatings and related products
and services for the flowlines and tie-in spools for the Ichthys LNG
Project. This is the second contract Bredero Shaw has received for the
Ichthys LNG Project and is in addition to the contract for the gas
export pipeline announced on February 14, 2012.

The Ichthys LNG Project is a Joint Venture between INPEX (Operator) and
Total. Gas from the Ichthys Field, in the Browse Basin approximately
200 km offshore Western Australia, will be gathered using the risers
and flowlines and will undergo preliminary processing at the offshore
central processing facility to remove water and extract condensate. The
gas will then be exported via an 889 km subsea pipeline to the onshore
LNG facility to be located at Blaydin Point, Darwin, Northern
Australia. The Ichthys LNG Project is expected to produce 8.4 million
tonnes of LNG and 1.6 million tonnes of LPG per annum, along with
approximately 100,000 barrels of condensate per day at peak.

The contract involves coating approximately 148 km of 6″ to 18″ diameter
pipe that will be protected with three-layer polypropylene
anticorrosion coating and Thermotite® multi-layer polypropylene
insulation. Work will commence during the second quarter of 2013. The
company will execute the work at Bredero Shaw’s facilities in Kabil,
Indonesia and Kuantan, Malaysia. The Kabil and Kuantan facilities are
technology-based, full service coating plants that were built
specifically to process large, complex projects in the Asia Pacific
region.

ShawCor Ltd. is an energy services company specializing in products and
services for the pipeline and pipe services and the petrochemical and
industrial segments of the oil and gas industry. The company operates
through seven divisions with over seventy manufacturing and service
facilities located around the world.

Bredero Shaw, ShawCor’s largest division, is the global leader in pipe
coating solutions and employs approximately 4,000 permanent and
contract personnel located at offices and facilities in fifteen
countries.  The division provides specialized coating systems and
related services for corrosion protection, insulation and weight
coating applications on land and marine pipelines including highly
engineered corrosion and insulation systems for deepwater applications.

This news release contains forward-looking information within the
meaning of applicable securities laws. Words such as “may”, “will”,
“should”, “anticipate”, “plan”, “expect”, “believe”, “predict”,
“estimate” or similar terminology are used to identify forward-looking
information. This forward looking information is based on assumptions,
estimates, and analysis made in the light of the company’s experience
and its perception of trends, current conditions and expected
developments, as well as other factors that are believed by the company
to be reasonable and relevant in the circumstances. Forward looking
information involves known and unknown risks, uncertainties and other
factors which may cause actual results, performance or achievements to
be materially different from those predicted, expressed, or implied by
the forward-looking information. The risks and uncertainties include,
among other things, changes in global economic activity and changes in
energy supply and demand which impact on the level of drilling activity
and pipeline construction; political, economic and other risks arising
from international operations; compliance with environmental, trade and
other laws; liability claims; fluctuations in foreign exchange rates
and fluctuations in raw material prices, as well as other risks and
uncertainties that are more fully described in the company’s Annual
Information Form, annual and quarterly reports and other reports and
filings made with securities regulatory authorities and available at
www.sedar.com.

SOURCE ShawCor Ltd.


Source: PR Newswire