Aegion Corporation Energy & Mining Joint Venture Awarded Multiple Contracts in the Middle East Valued at Over $21 Million (USD)
ST. LOUIS--(BUSINESS WIRE)-- Aegion Corporation (Nasdaq Global Select Market: AEGN) today announced that United Special Technical Services, LLC ("USTS"), a joint venture between United Pipeline Systems, Inc., a subsidiary of Aegion ("United"), and Special Technical Services LLC ("STS") of Oman, was recently awarded multiple projects with a combined value of over $21 million (USD). These projects are located in Kuwait, Algeria, Bahrain and Oman. United owns a 51 percent interest and STS owns a 49 percent interest in the joint venture.
In Kuwait, USTS will supply and install United's proprietary Tite Liner® system in over 230 miles of 4-inch to 30-inch diameter water injection pipelines. Work on this project is expected to begin in early 2013 and to be completed within 18 months.
The Algeria contract requires USTS to design and install a high-density polyethylene (HDPE) liner in nearly 10 miles of 8-inch diameter water disposal pipelines. This project will be the first time the Tite Liner® system has been installed in Algeria.
The project in Bahrain will require USTS to perform the fusion and installation of approximately 40 miles of HDPE ring main headers to be used for water distribution throughout an oilfield.
The contracts in Oman involve the supply and installation of eight miles of HDPE liners in water injection and process pipelines ranging from 12-inches to 24-inches in diameter.
The projects in Algeria, Bahrain and Oman are expected to be completed by June 2013.
Dorwin Hawn, Aegion's Senior Vice President, Energy & Mining, said, "We are pleased to have been awarded these contracts in the Middle East. USTS positions United and Aegion's Energy & Mining group to be fully prepared to capture opportunities in this region and to continue growing our footprint in this important region. We are confident we will continue to see increased activity in the Middle East."
About Aegion Corporation
Aegion Corporation is a global leader in infrastructure protection, providing proprietary technologies and services to protect against the corrosion of industrial pipelines and for the rehabilitation and strengthening of sewer, water, energy and mining piping systems and buildings, bridges, tunnels and waterfront structures. More information about Aegion can be found on its internet site at www.aegion.com.
About United Pipeline Systems, Inc.
United Pipeline Systems, Inc. ("United"), a subsidiary of Aegion Corporation, is a global leader in providing high-density polyethylene (HDPE) lining systems for internal pipeline protection. United has constructed and internally lined more than 14,000 kilometers (9,000 miles) of pipelines on six continents since 1985. United developed the Tite Liner® system, which protects steel pipelines from a variety of chemicals and abrasives through a broad range of temperatures and pressures. More information about United can be found at www.unitedpipeline.com.
About United Special Technical Services, LLC
In March 2012, United Pipeline Systems, Inc., a subsidiary of Aegion Corporation, organized United Special Technical Services, LLC ("USTS"), a joint venture located in the Sultanate of Oman between United and Special Technical Services LLC ("STS"), for the purpose of executing pipeline, piping and flowline high-density polyethylene lining services throughout certain countries in the Middle East and Northern Africa. UPS holds a fifty-one percent (51%) equity interest in USTS and STS holds the remaining forty-nine percent (49%) equity interest. USTS initiated operations in the second quarter of 2012.
About Special Technical Services LLC
Special Technical Services LLC is a premier oil and gas services company established in Oman in 1980, specializing in fabrication, construction and maintenance. STS offers solutions encompassing the entire range of services for the oil and gas and the power and petrochemical sectors. More information about Special Technical Services LLC can be found on its internet site at www.stsoman.com.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. The Company makes forward-looking statements in this news release that represent the Company's beliefs or expectations about future events or financial performance. These forward-looking statements are based on information currently available to the Company and on management's beliefs, assumptions, estimates or projections and are not guarantees of future events or results. When used in this document, the words "anticipate," "estimate," "believe," "plan," "intend," "may," "will" and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Such statements are subject to known and unknown risks, uncertainties and assumptions, including those referred to in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2011, as filed with the Securities and Exchange Commission on February 29, 2012, and in the Company's subsequent quarterly reports on Form 10-Q. In light of these risks, uncertainties and assumptions, the forward-looking events may not occur. In addition, the Company's actual results may vary materially from those anticipated, estimated, suggested or projected. Except as required by law, the Company does not assume a duty to update forward-looking statements, whether as a result of new information, future events or otherwise. Investors should, however, review additional disclosures made by the Company from time to time in its periodic filings with the Securities and Exchange Commission. Please use caution and do not place reliance on forward-looking statements. All forward looking-statements made by the Company in this news release are qualified by these cautionary statements.
United Pipeline Systems®, Tite Liner®, Aegion™ and the Aegion® logo are the registered and unregistered trademarks of Aegion Corporation and its affiliates.
David F. Morris, 636-530-8000
Senior Vice President and Chief Administrative Officer
KEYWORDS: Kuwait United States Bahrain North America Oman Missouri Africa Middle East Algeria
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