North American Construction Group says it has entered into a new five-year contract with an unnamed major oilsands customer.
The heavy construction and mining services provider says the contract is expected to provide work backlog valued at $400 million.
It’s the third major oilsands contract NAGC has announced in the last year, and the first within a newly formed joint venture with the Mikisew Group of Companies, which is directly owned by the Mikisew Cree First Nation.
“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 oilsands customers,” NAGC president Joe Lambert said in a statement.
“Our core backlog now stands at over $1.6 billion, compared with less than $100 million at this time last year. 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 oilsands mines.”
Mikisew Group of Companies CEO Edward Courtoreille said the partnership “not only provides opportunity for operating contracts throughout the full, multi-decade lifecycle of an oilsands mine but also allows us to pursue opportunities complimentary to our other businesses and further benefit our communities and the Mikisew Cree First Nation.”