The North American pipeline construction business unit of Willbros Group, Inc. has garnered a contract with Southeast Supply Header, LLC (SESH) to construct approximately 190 miles of the SESH project, which consists of 42-inch and 36-inch diameter pipeline. SESH is a joint venture between subsidiaries of Spectra Energy Corp and CenterPoint Energy Inc.
SESH will begin near the Perryville Hub in northeast Louisiana and will interconnect with the Gulfstream Natural Gas System, L.L.C. pipeline in Mobile County, Alabama. Construction of the project is anticipated to begin in the fourth quarter of 2007 and to be completed in the summer of 2008.
Willbros had previously indicated in its November 2006 conference call that it was "highly confident" in the award of multiple contracts, which were expected to exceed $250 million in total contract value. This most recent award becomes an important part of those work assignments, which include projects to perform large diameter pipeline construction in Texas, Louisiana, Mississippi, and Alabama.
John Allcorn, Executive Vice President, commented, "We're pleased to have negotiated terms and conditions that are a win-win scenario for both us and our clients. Winning these multiple awards allows us to more efficiently schedule our resources."
Willbros also disclosed that on February 15, 2007, the U.S. District Court for the Southern District of Texas issued an Order approving final settlement of the previously disclosed consolidated securities class action lawsuit. The class action was filed in 2005 and named as defendants (1) the Company, (2) certain of its then-current officers, and (3) a former officer of its international subsidiary. The Order dismissed with prejudice all claims against all defendants. No members of the settlement class exercised their right to be excluded from or object to the final settlement, which was funded by Willbros' insurance carrier. The Court's Order ends the class action litigation.
Willbros Group, Inc. is an independent contractor serving the oil, gas and power industries, providing engineering and construction services to industry and government entities worldwide.