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Resources contractor AusGroup has continued navigating the sea change from construction to operations by landing maintenance work with Chevron worth hundreds of millions of dollars.

Subsidiary AGC Industries was awarded the five-year contract to provide brownfield maintenance and support services for the operational phase of all of Chevron's WA assets, including the Gorgon and Wheatstone LNG projects.

At least 100 jobs will be created. While AusGroup declined to disclose the value of the work, it is estimated at being worth more than $300 million.

Managing director Stuart Kenny said the win was a realisation of a shift to operational services once the construction boom in energy and mining subsided.

"It's very much a landmark contract," Mr Kenny said. "It demonstrates the change in direction that was taken a couple years ago that is now really starting to pay off. It's really about focusing on recurring revenue streams."

The Chevron contract includes potential extensions of up to five years.

"It could lead to 10 years work," Mr Kenny said.

"This is a continuation of a relationship we've had with Chevron for a number of years."

AusGroup did more than $100 million in fabrication work for Gorgon and is working on the hooking-up of the Wheatstone platform.

In line with the wind-down in construction, the company has made cutbacks to the operating and cost structure of its Kwinana-based fabrication business.

The changes in February led to the departure of executive general manager Michael Bourke, who had headed the fabrication and business units. A Singapore-based fabrication business remained unchanged.

AusGroup has existing multi-year service contracts with Woodside for the North West Shelf Project and Alcoa of Australia.

Last week the contractor switched financiers from Australia's Wingate Group to Singapore's DBS Bank, entering a US$20 million facility agreement at a reduced interest rate.

Shares in the Singapore-listed company have recently been trading near historic lows.

"Because there's no numbers associated with (the contract), the market over there truly doesn't fully appreciate this," Mr Kenny said.



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