How Tempo's extended deals with Chevron and Rio Tinto helps their projects

By Uwear

May 19, 2020

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Aussie resource services company Tempo Australia recently locked up new contract extensions with energy behemoth Chevron and mining giant Rio Tinto that will total about $50 million.

The change to its existing sub-contract at Chevron’s Gorgon Liquefied Natural Gas (LNG) Project on Barrow Island in Western Australia refer to the arrangement of Managed Structural, Mechanical and Piping, Electrical & Instrumentation (SMPE&I) craft labour for construction, pre-commissioning and commissioning services to the Mechanical, Electrical and Instrumentation (ME&I) contractor on the project.

As was previously reported by Business Review Australia, LNG is on the rise as one of Australia’s top exports.

“The award of these major contract extensions in what continues to be challenging market conditions demonstrates and showcases Tempo’s ability to provide our portfolio of bluechip clients with solutions based on our core values of productivity, performance and safety, and we look forward to continuing to build long term relationships with these key clients,” said Carmelo Bontempo, executive chairman of Tempo Australia.

Tempo’s secured requisition for additional personnel to stay on Barrow Island will increase its workforce under the company’s contract despite how difficult it is for workers to get beds on the island. However, Chevron has now approved the requisition for additional bedspace.

With the secured variations, nearly 400 Tempo employees are now on site at the Gorgon Project. When the contract was initially granted in May 2015, there were 100 members of personnel on the grounds.

The $55 million project is about 90 per cent complete, but is still months behind schedule. Chevron’s goal was to ship its first LNG cargo by the end of 2015, but acknowledged it may not happen until 2016.

In addition, Tempo received an extension with Rio Tinto at its Cape Lambert Port B Expansion Project in the Pilbara region of Western Australia. The $13.4 million contract will see Tempo provide structural, mechanical and piping miscellaneous works as well as commissioning support for Rio Tinto’s expansion work at the port.

It is Tempo’s first major contract with Rio Tinto.

“We’re pleased to have been given the opportunity to execute the miscellaneous SMP and commissioning support works at Cape Lambert,” said Tempo general manager Daniel Hibbs.

Tempo reported sales receipts of $15.3 million and operating cash flows of $1.9 million during the June 2015 quarter.

Established in 2011 to provide Structural Mechanical Piping (SMP) services to the mining, oil and gas sectors, Tempo works with clients to execute projects safely and deliver them both on time and within its budget.

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