Civeo to provide services for LNG Canada
The contract covers up to 400 rooms for approximately fifteen months for LNG Canada's initial room needs. LNG Canada is a joint venture comprised of Shell Canada Energy, an affiliate of Royal Dutch Shell plc, and affiliates of PetroChina, Korea Gas Corporation and Mitsubishi Corporation.
To support this new contract, Civeo will develop a new accommodations facility, to be named Sitka Lodge, which will include private washrooms, recreational facilities and other amenities. Civeo's Sitka Lodge will initially have 436 rooms with the potential to expand to serve future accommodations demand in the region.
In order to account for the initial construction of the Sitka Lodge, Civeo has increased its 2015 capital expenditure guidance. Civeo's revised capital expenditure guidance for 2015, including the Sitka Lodge, is $80 million to $90 million, and revenues from the contract are expected to be largely recognized in 2016. ■