Civeo Announces Room Commitment from LNG Canada for the Sitka Lodge in Kitimat, B.C. and Termination of Bird-Civeo Joint Venture
HOUSTON and CALGARY, Alberta, Dec. 03, 2018– Civeo Corporation(“Civeo” or the “Company”) (NYSE:CVEO), one of the largest global providers of workforce accommodations, logistics and facility management services to the natural resource industry, announced today that it has been awarded a room commitment from LNG Canada. The Company also announced it has elected to terminate the Bird-Civeo Joint Venture (“B-C JV”) and no longer participate in the design and construction of LNG Canada’s Cedar Valley Lodge.
LNG Canada Room Commitment at Sitka Lodge
Civeo is pleased to announce today that it has been awarded a room commitment from LNG Canada to provide rooms and services from the Company’s existing Sitka accommodations facility. Civeo’s Sitka Lodge, located in Kitimat, British Columbia, has 646 rooms, with plans to expand to 1,100 rooms to support this contract, along with previously announced commitments. The contract is for an initial 18- month time period, with a minimum room commitment and options for extension of up to 36 months. In accordance with this contract, LNG Canada will use the Sitka Lodge for the initial construction phases of the LNG Canada export terminal. This contract at Sitka Lodge is in addition to the previously announced Sitka room commitments from Coastal GasLink Pipeline Project (“CGL”) and LNG Canada’s engineering, procurement and construction firm.
Bradley J. Dodson, Civeo’s President and Chief Executive Officer, stated “We are pleased to partner with the local First Nation to serve LNG Canada at our Sitka Lodge. The Sitka Lodge is strategically located to serve LNG infrastructure investment and can be expanded beyond the 1,100 rooms as room demand in the region dictates. We look forward to delivering best-in-class accommodations on this exciting LNG project.”
Bird-Civeo Joint Venture
In 2016, B-C JV announced it had been selected as the contractor for the design and construction of LNG Canada’s Cedar Valley Lodge. After the final investment decision for LNG Canada’s LNG export terminal in Kitimat, British Columbia was deferred in 2016, and against a changing market backdrop over the last two and a half years, Civeo has made the strategic decision to begin outsourcing the manufacturing of accommodation units and close its manufacturing plant in Alberta, Canada. This decision aligns with Civeo’s sourcing strategy in its U.S. and Australian operations. As a result, Civeo felt it was in its best commercial interest, as well as the best interest of LNG Canada and its partner, to no longer participate in the B-C JV.
Mr. Dodson commented, “We are proud of the work that Civeo and B-C JV have completed on the Cedar Valley Lodge to date, and we look forward to continuing to be a partner to LNG Canada through our Sitka Lodge and our mobile camps supporting the Coastal GasLink Pipeline Project.”
Civeo Corporation is a leading provider of workforce accommodations, with prominent market positions in the Canadian oil sands and the Australian natural resource regions. Civeo offers comprehensive solutions for housing hundreds or thousands of workers with its long-term and temporary accommodations, and provides catering, facility management, water systems and logistics services. Civeo currently operates a total of 30 lodges and villages in operation in Canadaand Australia, with an aggregate of approximately 32,000 rooms. Civeo is publicly traded under the symbol CVEO on the New York Stock Exchange. For more information, please visit Civeo’swebsite at www.civeo.com.
Frank C. Steininger
Senior Vice President & Chief Financial Officer