Toll Group has entered into a $180 million a three year agreement with Chevron Australia to manage logistical services on the Gorgon gas project on Barrow Island off Western Australia.
Mobil and Shell both have 25% stakes in the project.
Toll’s says work will begin after the project receives all necessary government approvals and the final investment decision by the joint venture partners, expected in the second half of this year, the company said.
"The Toll Group plans to execute the scope of work of this contract through the WA-based operations of Toll Energy, which specialises in providing supply chain management and logistics services to the oil and gas exploration, construction and production industries in Australia," Toll managing director Paul Little said in a statement.
This is the second major contract announced. Earlier this month Leighton Holdings subsidiary, Thiess in a joint venture with Decmil Pty Ltd and Kentz Pty Ltd was awarded a $500 million contract to design and construct a construction village on Barrow Island for Chevron Australia.
Work is expected to commence on the island after receipt of all necessary government approvals and following a final investment decision on the Chevron operated Gorgon Project from the Gorgon Joint Venture partners, expected in the second half of 2009.
The facility was expected to accommodate as many as 3,300 construction workers.
Gordon could end up costing the best part of $50 billion and have a 60 year life.
Toll shares fell 21 cents to $6.20 yesterday. Leighton shares rose 61 cents to $22.96.
Wesfarmers says it will hand over 45 of its Coles supermarkets and eight Liqourland stores to independent grocery group FoodWorks for $35 million, paid for by vendor finance.
Wesfarmers said the transfer is part of Coles’ broader plan to improve its overall network of over 700 supermarkets and over 600 Liquorland stores and is an important step in the Coles turnaround.
Coles Managing Director Ian McLeod said in a statement to the ASX that the store transfer is a win-win outcome that will ensure continued service to customers and ongoing jobs for team members.
“We think this is a great outcome for team members and customers of both Coles and FoodWorks,” Mr McLeod said. “FoodWorks view these Coles supermarkets as valuable additions to their existing portfolio of over 700 member stores.
“In undertaking this store transfer a key priority has been to ensure continuity of employment for the affected store teams. I’m very pleased to advise that all store team members will be offered roles with FoodWorks and that they will retain all their existing employment entitlements.”
Total payment for the stores is approximately $35 million, including payment for stock, cash and the transfer of employee entitlements. The transaction is subject to ACCC approval and the approval of FoodWorks’ shareholders.
Coles and FoodWorks will work together to ensure a smooth ownership transition for both store teams and customers. Stores will be handed over to FoodWorks progressively over a nine month period in line with an agreed transition plan.
Wesfarmers said Coles is supporting the store transfer arrangement through a secure vendor finance facility.
Wesfarmers shares rose 15 cents to $21.98.
Independent News & Media (INM), which owns a 39% stake in APN News & Media, has won more time from its lenders to repay a 200 million euros ($A348.37 million) bond.
Irish-based INM said a financial standstill agreement entered into on May 17 with its principal banks and bondholders, initially to run to June 26, had now been extended for another month, to July 24.
"Arrangements are also in place to provide the group with sufficient funding to meet its working capital requirements during this new standstill period," INM said.
"The extension of the standstill period will allow ongoing constructive discussions to continue between all key stakeholders in relation to the group’s financial restructuring."
Implementation of the standstill needed agreement from all INM’s principal bank lenders and more than 75 per cent of INM’s bondholders by value, with 81 per cent of the bondholders by value now agreed.
Later today a deadline for Canwest Global, the 56% shareholder in the Ten Network, to complete negotiations with its bond holders, is due to expire.
The June 30 deadline is the 5th or 6th that Canwest has been given after it missed interest payments.
