The Coastal GasLink pipeline project is an approximately 670-kilometre pipeline from the Dawson Creek area to the west coast of B.C. The proposed pipeline will transport natural gas to the proposed LNG Canada facility near Kitimat.
These contracts are subject to a positive final investment decision ("FID") from the LNG Canada joint venture; the timing of the FID is expected later in 2018.
The accommodation facilities are collectively expected to reach total peak room count of over 2,000, and revenue for the full-term of the contract is expected to be approximately C$100 mln over 2019-2021. Civeo will partner with a First Nation for each facility through its network of leading First Nation and community partnerships.
Civeo expects to deploy approximately C$10 mln in capital, primarily in 2019, across all four facilities, which will include maintenance to existing assets, new site service equipment and a limited number of new modular assets.
Bradley J. Dodson, Civeo's President and CEO, stated, "We are pleased to announce these contract awards, solidifying our position as the partner of choice for workforce accommodation solutions in Canada. The strength of our First Nation relationships was critical to these awards, and we look forward to collaborating with our partners to provide best-in-class accommodations along the Coastal GasLink pipeline project. Along with our recent acquisition of Noralta Lodge, this contract is a testament to our continued growing presence across Canada."
The company operates in some of the world's most active oil, coal and iron ore producing regions, including Canada, Australia and the U.S. The company has established a leadership position in providing a fully integrated service offering to its customers, which include major and independent oil companies, mining companies and oilfield and mining service companies.