Oct 19 2009
Insituform Technologies, Inc. (NASDAQ Global Select Market: INSU) announced today that the Mexican national oil and gas company Petróleos Mexicanos (“Pemex”) has awarded an additional $13.9 million contract to United Pipeline de Mexico, S.A. de C.V. (“UPM”), Insituform’s Mexican joint venture.
This contract complements Insituform’s award of a $12.4 million pipeline project for Pemex which was announced in September 2009.
As with the initial contract announced in September, it is expected that Insituform will utilize its subsidiaries to provide additional services required for this project. Corrpro Companies, Inc. will provide installation of a cathodic protection system and The Bayou Companies. Inc. will provide prefabrication services for skid-mounted equipment. Dorwin Hawn, Vice President – United Pipeline Systems for Insituform, said, “By contracting this work simultaneously with the associated pipeline construction and rehabilitation activities, this additional project allows Pemex to benefit from improved economies of scale.”
The 2009 acquisitions of Corrpro and Bayou have led to a broader product and service offering and augment Insituform’s United Pipeline Systems’ division. “Pemex has quickly realized the value of Insituform’s family of companies in our Energy and Mining division and we’re pleased to see this coordinated effort benefits our customer,” remarked J. Joseph Burgess, Insituform’s President and CEO. Project Management will be handled by UPM from its offices in Poza Rica, Veracruz.
Work on this project, which is expected to begin in November and take approximately 24 months to complete, will be performed simultaneously with the associated pipeline infrastructure work awarded in September. This project includes building and connecting pipelines and associated infrastructure to tie in the well production and process oil produced in various districts of Mexico’s Chicontepec oil region.
Source: http://www.insituform.com/