NACG bags $275M oil sands deal
This deal extends the company's master service agreement through 2023.
North American Construction Group Ltd. (NACG) has announced a $275 million oil sands contract that will effectively extend an existing master service agreement with a major oil sands producer through to December 2023.
The contractor of record, however, will now be Mikisew North American Limited Partnership (MNALP), of which NACG has a 49 per cent ownership stake in.
With this contract, NACG’s backlog is now a record $1.9 billion, certainly great news considering the challenges that the pandemic posed last year.
“Consistent with our corporate strategy, sustainability goals and previous communications, we are pleased to be growing our oil sands business and Indigenous partnerships while achieving our diversification goals,” said NACG President and CEO Joe Lambert.
“We maintain our commitment to meet the needs of our oil sands customers with high utilization of our largest equipment while at the same time improving the utilization of our smaller equipment on significant contracts outside of the oil sands region.”
He added that NACG continues to focus on its strategy to diversify into more commodity markets and geographic regions.
Dan Gallagher, Interim Chief Executive Officer, Mikisew Group, was also bullish about the contract.
“We are excited for another material win through our Mikisew North American Limited Partnership. This partnership continuously demonstrates the ability to provide low-cost, safe, and reliable large-scale services to oil sands clients while providing material benefits back to our community.”