ACHESON, Alberta, Sept. 14, 2021 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. (“NACG” or “the Company”) (TSX:NOA.TO/NYSE:NOA) today announced a contract award to Mikisew North American Limited Partnership (“MNALP”) by a major oil sands producer. The contract effectively extends the existing master service agreement between NACG and the producer to December 2023 but transitions to MNALP as the contractor. NACG anticipates the contract to generate approximately $275 million in revenue for NACG over the term of the agreement.
The contract award results in NACG’s combined backlog increasing to approximately $1.9 billion which is another record level for the Company. Furthermore, this transition of scope to an Indigenous partnership continues NACG’s positive trend in meeting and exceeding our goals as set out in our annual Sustainability Report.
Joe Lambert, President and CEO, stated: “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. 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. We continue to focus on our diversification strategy by having more customers in more commodity markets and geographic regions.”
Dan Gallagher, Interim Chief Executive Officer, Mikisew Group, stated: “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.”
https://www.globenewswire.com/news-release/2021/09/14/2296612/0/en/North-American-Construction-Group-Ltd-Announces-275M-Oil-Sands-Contract-Award-and-Extension.html