U.S.-based construction company Civeo has pulled out of a joint venture partnership with Bird Construction to build LNG Canada91裸聊视频檚 massive worker accommodation camp in Kitimat.
The announcement of the dissolution of the partnership between Civeo and Mississauga-based Bird Construction was made on Monday, December 3, at 6 p.m Eastern Time.
In its place, and also announced Dec. 3, is a new partnership between Bird and Calgary-based ATCO Structures to complete the construction of the 4,500-bed Cedar Valley Lodge, situated on Rio Tinto land adjacent to its smelter.
Civeo investor relations manager Regan Nielsen said the decision by the Texas-based company to dissolve its partnership with Bird partly came about as a result of the delayed LNG Canada Final Investment Decision in 2016 and 91裸聊视频渁 changing market backdrop91裸聊视频�, coupled with a strategic decision by Civeo to begin outsourcing the manufacturing of accommodation units.
91裸聊视频淎s a result, Civeo felt it was in its best commercial interest, as well as the best interest of LNG Canada and its partner, to no longer participate in the Bird-Civeo Joint Venture,91裸聊视频� said Nielsen. 91裸聊视频淭his decision aligns with Civeo91裸聊视频檚 sourcing strategy in its U.S. and Australian operations.91裸聊视频�
Nielsen said the outsourcing of the construction of its accommodation units ties in with Civeo91裸聊视频檚 decision to close its manufacturing plant in Alberta.
91裸聊视频淐iveo has since, with the consent of Bird, LNG Canada and [Fluor], elected to exit its participation in Bird-Civeo JV,91裸聊视频� said Nielsen.
91裸聊视频淏ird, the managing partner of the Bird-Civeo JV, continues to lead the design and construction of the Cedar Valley Lodge and has entered into a joint venture with ATCO Structures LNG Limited Partnership, which is now a party to the novated contract.91裸聊视频�
Novation, in contract law and business law, is the act of 91裸聊视频渞eplacing an obligation to perform with another obligation, or adding an obligation to perform, or replacing a party to an agreement with a new party.91裸聊视频�
https://www.northernsentinel.com/news/kitimat-gets-first-look-at-lng-canada-timeline/
Nielsen said Civeo was primarily focused on the modular aspect of the build and Bird on the site construction.
91裸聊视频淲e have no remaining contractual or financial obligations to Bird. There was no financial impact to Civeo related to winding up the [joint venture],91裸聊视频� said Nielsen.
Bird and Civeo formed the Bird-Civeo Joint Venture in 2015 to bid for the Cedar Valley Lodge project. In May 2016 LNG Canada announced the Bird-Civeo partnership would be responsible for the Lodge91裸聊视频檚 engineering, procurement and construction (EPC).
They were handed a limited notice to proceed pending the LNG Canada FID announcement.
ATCO91裸聊视频檚 chair and CEO Nancy Southern said in a statement released late on Monday that the Bird-ATCO Joint Venture would supply the 4,500 rooms for the lodge through an existing joint venture between ATCO and the Haisla Nation.
91裸聊视频淭he project is one of the largest accommodation facilities ever built in Canada and will provide high-quality amenities for the LNG Canada workforce,91裸聊视频� reads the statement.
Southern said ATCO has executed several operational support services contracts and modular site accommodation projects within the Kitimat region.
91裸聊视频淪ince 2011, the company has operated a successful joint-venture partnership with the Haisla Nation, which will also benefit from the Cedar Valley Lodge project.
91裸聊视频淥ur long history of delivering major workforce housing projects throughout the world continues to position us well to support landmark infrastructure development in the years ahead,91裸聊视频� said Southern.
In 2016, ATCO completed construction of a 1,600 person workforce housing facility for BC Hydro91裸聊视频檚 Site C project. The company has also delivered major workforce accommodations for customers throughout the world, including Canada, the U.S., South America, the Middle East and Africa.
https://www.northernsentinel.com/news/camp-contract-awarded-by-lng-canada/
Civeo CEO and director Bradley Dodson said the company was proud of the work that the Bird-Civeo joint venture had completed on the lodge.
91裸聊视频淲e look forward to continuing to be a partner to LNG Canada through our Sitka Lodge [in Kitimat] and our mobile camps supporting the Coastal GasLink Pipeline Project,91裸聊视频� said Dodson.
Early last month Civeo announced it was expanding its 646-room Sitka Lodge to approximately 1,100 rooms to provide housing for an initial LNG Canada construction workforce and for workers building the western-most section of the Coastal GasLink pipeline.
