TORONTO, July 30, 2018 /CNW/ - Aecon Group Inc. (TSX:ARE.TO - News) announced today that Mikisew Aecon Limited Partnership, a newly formed joint venture between Aecon (49%) and Mikisew Group of Companies (Mikisew Cree First Nation) (51%), has been awarded a Master Service Agreement (MSA) by Fort Hills Energy L.P. for work on the Fort Hills oil sands project located approximately 90 kilometres north of Fort McMurray, Alberta. The Fort Hills oil sands project is operated by Suncor. Two initial contracts awarded under the MSA are expected to have an estimated aggregate value of approximately $100 million.
Through the MSA, the Mikisew Aecon Limited Partnership will be responsible for overburden removal and other major civil and earthworks at Fort Hills. Work on the initial projects began in the second quarter of 2018 and both are expected to reach completion in the second quarter of 2019.
This new venture with the Mikisew Group of Companies will focus on mining and heavy civil construction activities in Alberta and is a welcome addition to Aecon's partnerships with more than 25 Indigenous communities across Canada.
"We're very pleased to announce the creation of our new partnership with Aecon," said Edward Courtoreille, Chief Executive Officer, Mikisew Group of Companies. "Aecon's proven track record working effectively with Indigenous communities across the country, along with their success as a trusted partner in the oil sands industry, made it an easy decision to form this partnership."
The partnership adds to Mikisew Cree First Nation's portfolio of construction capabilities which will create further business and employment opportunities.
"The addition of this partnership to our group of Nation-owned companies allows us to add heavy civil construction to our portfolio," said Courtoreille. "We look forward to growing the Mikisew Aecon Limited Partnership to allow us to reinvest profits generated within our businesses, and ultimately the Mikisew Cree First Nation."
Mark Scherer, Executive Vice President, Aecon Industrial, said Aecon looks forward to sharing its experience and lessons learned from effectively delivering projects at the Fort Hills site through this new partnership.
"Aecon's prior success of completing projects on-time and on-budget at Fort Hills will ensure the highest standards of quality and safety going forward. This award strengthens our key relationships on this project with our valued client, Fort Hills Energy L.P., and the Mikisew Group of Companies," said Scherer.
In addition to partnerships, Aecon's Indigenous Engagement Program also includes a 360° strategy which focuses on apprenticeships, employment, training, sustainability and business development, all built on a foundation of trust with local communities.
"We're proud to partner with the Mikisew Cree First Nation and look forward to creating lasting positive impacts in the community," said John M. Beck, President and Chief Executive Officer, Aecon Group Inc. "This new MSA illustrates the strength and diversity of Aecon's Industrial segment and our expertise in delivering contract mining services to Canada's oil sands."
Aecon Group Inc. (TSX:ARE.TO - News) is a Canadian leader and partner-of-choice in construction and infrastructure development. Aecon provides integrated turnkey services to private and public-sector clients in the Infrastructure and Industrial sectors, and provides project management, financing and development services through its Concessions segment. For more information, please visit aecon.com and follow us on Twitter, LinkedIn, and Instagram at @AeconGroup.
About Mikisew Group of Companies
Mikisew Group of Companies is the owned economic development arm of the Mikisew Cree First Nation. The Mikisew Cree First Nation is a First Nation in Northeastern Alberta with approximate membership of 3,000 individuals predominantly residing in Fort Chipewyan, Fort McMurray and Edmonton. The Mikisew Group of Companies is comprised of two main operating entities (wholly owned) and 11 limited partnerships (majority owned) servicing the Alberta oil sands in various industries including site services, fleet maintenance, transportation services, emergency medical response and fire response, camp and catering services, construction services, structural steel, electrical and instrumentation services, aerodrome handling and facilities maintenance. For more information, please visit mikisewgroup.com.
Statement on Forward-Looking Information
The information in this press release includes certain forward-looking statements. These forward-looking statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. Forward-looking statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, ongoing objectives, strategies and outlook for Aecon. Forward-looking statements, may in some cases be identified by words such as "will," "plans," "believes," "expects," "anticipates," "estimates," "projects," "intends," "should" or the negative of these terms, or similar expressions. In addition to events beyond Aecon's control, there are factors which could cause actual or future results, performance or achievements to differ materially from those expressed or inferred herein including, but not limited to: the timing of projects, unanticipated costs and expenses, general market and industry conditions and operational and reputational risks, including Large Project Risk and Contractual Factors. Readers are referred to the specific risk factors relating to and affecting Aecon's business and operations as filed by Aecon pursuant to applicable securities laws. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Aecon Group Inc.
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