The Northern Territory Government has announced the signing of a $104 million contract to build and operate a new oil and gas Marine supply Base at East Arm.


The contract will see MacMahon Holdings design and construct the base, which will include special purpose wharf and dockside infrastructure to service the provisioning Offshore Supply Vessels, while construction partner ShoreASCO will own and operate the facility.


NT Chief Minister Paul Henderson welcomed the signing of the contract, which will see construction begin in the coming months on the base.


“We are fast becoming the oil and gas capital of Australia and are about to undergo a significant economic boom,” Mr Henderson said.


“We’ve backed this up with $6 million in funding to provide water, power sewage connections to the site ready for it to be developed into a world class Marine Supply Base.


“Already major players have come on board to take advantage of our world class Marine Supply Base with ConocoPhillips to use if for their existing operations, INPEX confirming they will using the base during their multi-billion gas development and Shell confirming they will use it to service their floating LNG plant in the browse basin,” Mr Henderson said.


“The base will be the first in northern Australia and provide a purpose-built facility for vessels that supply offshore oil and gas projects,” Mr Henderson said.

“The supply base will bolster Darwin and the Territory’s reputation as the port of choice for servicing the needs of the offshore industry and is opportunity for Macmahon to establish another piece of major infrastructure, critical to supporting the Territory’s growth,” Machmahon CEO Nick Bowen said.


The contract will see Macmahon construct a new wharf dedicated to the offshore industry, plus establish undercover warehouse and open hardstand storage areas with built-in fuel, water and drilling bulks provisioning capacity, in addition to waste management and dangerous goods transit services across the secure facility.


The Marine Supply Base, to be built next to East Arm Wharf, is expected to be completed by the end of calendar 2013 and will employ in the order of 125 people at the peak of construction.