ALBERTA – North American Construction Group earlier this week announced a five-year multiple use contract and an associated term contract with a major oil sands customer. The agreement runs through December 2023 and the backlog value is expected to be approximately $400 million.
The agreement was executed within a newly formed joint venture, the Mikisew North American LP. Our joint venture partner, the Mikisew Group of Companies, is directly owned by the Mikisew Cree First Nation.
Joe Lambert, president and COO, said, “This contract award is the third time in the last year that a significant customer has demonstrated long term faith in NACG and further enforces our future growth projections. We are excited to work with the Mikisew Group and believe this is the beginning of a long term relationship in providing opportunity and benefits to their community while also providing safe, quality construction and mining services to our oil sands customers.”
“Our core backlog now stands at over $1.6 billion, compared with less than $100 million at this time last year,” he added. “This distinct shift from a largely spot market to one underpinned by long term work commitments is directly linked to robust and consistent production outputs from several oil sands mines.”
Edward Courtoreille, CEO of the Mikisew Group of Companies, said, “We are proud to partner with the marketplace leader of heavy construction and mining services and elated of our subsequent five-year agreement. Our new partnership allows our group of companies to provide long term fiscal and employment benefits to members of the First Nation.”
Headquartered in Acheson, Alta., North American Construction Group (www.NACG.ca) is one of Canada’s largest providers of heavy construction and mining services. For more than 60 years, NACG has provided services to large oil, natural gas and resource companies.