Duratec (ASX:DUR) announced a milestone with the awarding of a multi-million-dollar service contract in Papua New Guinea.
The agreement, secured through its wholly owned subsidiary, Duratec (PNG), involves providing specialised plug and abandonment (P&A) services for Lihir Gold, a subsidiary of the global mining giant Newmont Corporation (ASX:NEM).
The project is expected to generate approximately $45 million in revenue over a 12-month term, subject to performance and scope requirements under standard commercial terms.
The scope of work is primarily tied to Phase 1 of the Lihir Nearshore Soil Barrier Project, focusing on the integrated delivery of safe well decommissioning activities.
Duratec plans to mobilise immediately, leveraging a combination of experienced internal personnel, established local subcontractors, and the technical expertise of its joint venture, DXP Energy Solutions. Equipment for the mobilisation will be sourced through standard dry hire arrangements.
Managing Director Chris Oates highlighted the importance of the award, noting that it represents Duratec’s first service delivery within Papua New Guinea.
He emphasised that the contract aligns with the company's broader strategy of expanding alongside existing clients into new geographical markets.