Established in 1919, Clough delivers an integrated Engineering, Procurement and Construction service primarily to oil and gas projects in Australia, South East Asia and the USA. The Group's services range from concept development through design, construction, installation, commissioning, operations and maintenance.

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Trading Update

22 October 2008

Today Clough Limited advised that its 82% owned subsidiary PT Petrosea, which is listed on the Indonesia Stock Exchange, released a trading update with respect to its operations performed in an alliance with its client, PT Ilthabi Bara Utama (IBU) in Indonesia.

Petrosea has been working for IBU on a series of contracts to develop and operate the Pakar Coal mine in East Kalimantan. IBU has advised that additional funding will be required to complete the project due to operational reasons and that their investment group led by Merrill Lynch has suspended further releases of funds to the project until refinancing negotiations are concluded. Petrosea, in cooperation with IBU has suspended work at the site and has stood down equipment and staff pending the outcome of the refinancing process.

IBU has advised that they are confident in the economics of the project and are in advanced negotiations to deal with the funding issue. Petrosea is working constructively with IBU and their Investor group to facilitate a resolution.

Our internal view based on information provided by IBU and their Investor group is that the refinancing process will be concluded successfully. Should this not be the case we estimate a maximum exposure on this issue to Clough of $23m.

 

Ends

John Smith, Chief Executive Officer +61 8 9281 9407
Gaye Gelok, Manager Communications & Marketing +61 8 9281 9451/0413 336 323

 

About Clough

Clough delivers an integrated Engineering, Procurement and Construction service to projects in the oil and gas, mineral and infrastructure sectors in Australia and across South East Asia. The Group’s services range from concept development through design, construction, installation, commissioning, operations and maintenance.

We employ about 5,000 skilled professional, technical and trades personnel from bases across Australia, Indonesia and Thailand and deploy a first class suite of integrated management systems. We are committed to the concept of zero harm and the wellbeing of our people and to the sustainability of the environment and communities in which we work.