GR ENGINEERING SERVICES LIMITED — Capital/Financing Update 2020

Dec 22, 2020

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ASX RELEASE

23 December 2020

For immediate release to the market

CONTRACT AWARD – UPSTREAM PRODUCTION SOLUTIONS NORTHERN ENDEAVOUR FPSO

GR Engineering Services Limited (ASX: GNG) (GR Engineering) is pleased to announce that its wholly owned subsidiary, Upstream Production Solutions Pty Ltd (Upstream PS) has been awarded a one year contract with the Department of Industry, Science, Energy and Resources of the Australian Government (DISER) to provide operations, maintenance and project services to the Northern Endeavour FPSO (FPSO) and associated infrastructure (the Contract) in preparation for a disconnection and removal of the FPSO.

As previously announced on 15 May 2020, Upstream PS has been engaged by the Commonwealth since mid-February 2020 to provide operations and maintenance services to the FPSO, in a nonproducing state. The current contract is due to expire on 31 December 2020.

The term of the new Contract expires on 31 December 2021. Based on the current budget for core operation and maintenance services and planned pre-disconnection project activities, it is anticipated that revenue from the Contract will be approximately $130 million.

Commenting on the award of the Contract, GR Engineering’s Managing Director, Geoff Jones stated that:

“We are pleased to continue working with DISER and the relevant regulatory bodies to safely manage and maintain the FPSO and execute the required pre-disconnect preparation activities to support a safe removal of the FPSO in the future.”

Ends.

For further information please contact:

Geoff Jones

Managing Director  +61 8 6272 6000  geoff.jones@gres.com.au

Omesh Motiwalla

CFO & Company Secretary

•  +61 8 6272 6000

•  omesh.motiwalla@gres.com.au

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GR ENGINEERING SERVICES LIMITED ABN 12 121 542 738 Tel: +61 8 6272 6000 Fax: +61 8 6272 6001 Email: gres@gres.com.au Website: www.gres.com.au PO Box 258, Belmont WA 6984 71 Daly Street, Ascot WA 6104