Australian company Viva Energy Refining Pty Ltd has been awarded a $450million-per-year contract to refine and supply fuel for the Australian Defence Force.
FILE PHOTO (March 2017): Flight deck crew on HMAS Adelaide ‘hot refuel’ a running MH-60R Seahawk helicopter during Exercise Ocean Explorer 17, off the west coast of Australia. Photo by Leading Seaman Peter Thompson.
The contract – which is subject to market fluctuations – is for an initial six years and may be extended to 12 years.
It includes the supply of the specialist military aviation fuel for Navy helicopters, known as F44, which has not be produced in Australia for 10 years.
The contract could be worth an estimated $2.7 billion over six years and will see ADF fuel supplies produced at the Viva Energy refinery in Geelong, Victoria – one of only two remaining oil refineries in Australia, where around 1000 people are employed.
Minister for Defence Industry Pat Conroy said that by awarding this contract to an Australian company the government was increasing Australia’s refining capability and reducing reliance on imported fuels.
“This secures a reliable fuel supply for Defence, critical to national security, and is consistent with the government’s response to the Defence Strategic Review, which highlighted fuel supply vulnerabilities and the need for resilient national fuel supply, distribution and storage,” Mr Conroy said.
“We are working hard to build a resilient fuel supply for Defence and to strengthen Australia’s national security – and this domestic fuel supply contract will contribute to this.