Walter Diversified Services

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Diversified Construction Corporation

Diversified Construction Corporation provides a range of specialist pipeline design, construction and maintenance services primarily to the oil and gas sector, but also to the water industry. The acquisition of Diversified Construction Corporation was part of WDS’ strategy to become a diversified contract service provider in a number of industries which suit the Group’s business model and operational expertise. Both Walter Mining and Diversified Construction Corporation rely on core contracting and project management expertise and the companies intend to operate jointly in areas such as new mine development, infrastructure and civil tunnelling and pipeline construction activities.

Diversified Construction Corporation is one of only a few companies to operate in each of the upstream (flow lines and gathering systems), midstream (transmission pipelines) and downstream (distribution networks) segments of the Australian market. The business specialises in the construction and maintenance of short to medium length pipelines, but has the equipment and capacity to work on pipelines up to 250 kilometres in length.

Diversified Construction Corporation currently operates in Queensland and South Australia and has considerable experience working in difficult terrain and environments.

The business’ current services offerings include:


Service	Description

Design, construction and management of pipelines	Steel, plastic, glass reinforced epoxy, high density polyethylene pipelines for oil, gas, water and sewage applications.

Construction of high-pressure transmission pipelines	High-pressure transmission pipelines are used primarily to transport hydrocarbons from field destinations (well heads) to processing plants, and for carrying gas from the processing plant to the market.

Pressure testing	Hydrostatic and pneumatic testing of licensed and unlicensed pipelines and facilities.

Civil construction	Access roads, lease pads, turkeys nests and associated concrete footings and structures.

Electrical and instrumentation	Design and installation of control, elemetry and cathodic protection systems.

Installation of oil facilities	Beam pump installation, refurbishment, repair and relocation; Jet pump installation and repair; Electronic submersible pump installation and repair.

Pipeline refurbishment	Repair of in-service pipelines; Removal and replacement of coating systems; Isolation, removal and replacement of pipeline sections.

The majority of the Diversified Construction Corporation’s oil and gas pipeline revenue is currently generated from upstream and midstream activities. The business’ water pipeline operations are focussed on downstream urban distribution activities in Queensland. However, Diversified Construction Corporation has significant experience and capabilities in the water sector and intends to expand its operations in water pipeline services.

Diversified Construction Corporation has a quality management system which has been certified to comply with ISO/AS 9001, which, although not mandatory, the Directors believe is often important in obtaining construction contracts from major clients in the oil and gas industry. This accreditation, combined with other internal procedures employed by WDS, ensures the business performs its services in a manner that maximises efficiency, without compromising safety.

A detailed listing of Diversified Construction Corporation’s Pipeline and Construction Maintenance Equipment (as at November ’06) is given in the table below.


Equipment	Number owned by Walter Diversified Services	Description

Bucket wheel trenchers	8	Excavation of cross country pipelines in material other than rock.

Rock saws	2	Used in the excavation of cross country pipelines in hard material and rock.

Cranes/sidebooms	10	Used in stringing and laying of pipes into the trench.

Padding machines	2	Used in the processing and crushing of excavated material from the trench and feeding back into the trench as select backfill under, around and over the pipe.

Excavators, backhoes, forklifts, front-end loaders	64	Used in excavation and backfill of trenches when the trenching and padding machines cannot be used.

Bulldozers/graders	24	Used in clearing and establishment of pipeline area and in reinstatement of areas.

Prime movers / trucks / low loaders	54	Used for floating equipment between work sites.

Staff housing facilities	2	Used to accommodate workforce; Critical in ability to establish quickly; Easily moveable to new location; Accommodates up to 120 staff.