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Defence hands over fuel facility to Viva Energy

Defence hands over fuel facility to Viva Energy

Viva Energy Australia has been formally handed operation control of HMAS Cairns’ fuel facility by the Commonwealth.

Viva Energy Australia has been formally handed operation control of HMAS Cairns’ fuel facility by the Commonwealth.

As part of Viva Energy's $46 million deal with Defence, the company will manage and maintain the fuel terminal on behalf of the Australian Defence Force, as well as being responsible for supplying bulk marine diesel fuel to military vessels in the Cairns region.

The formal handover ceremony was attended by senior Defence personnel, as well as Viva Energy chairman, Robert Hill, and chief executive, Scott Wyatt.

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Speaking at the ceremony, Wyatt welcomed Defence’s continued confidence in Viva Energy and acknowledged the strategic partnership between both organisations that has a joint focus on safe and reliable supply security.

"Through the commercialisation of the fuel facility at HMAS Cairns, Viva Energy continues to build our strategic relationship with Defence," Wyatt said.

"We look forward to bringing our expertise in safe and efficient supply chain operations to one of Defence’s important fuel assets, demonstrating the benefits of an industry managed approach. We look forward to managing the facility in close partnership with Defence."

Commander Joint Logistics, Rear Admiral Ian Murray welcomed the partnership and the benefits that this collaboration will bring to both Defence and the local industry.

“This is a significant milestone for the Defence Fuel Transformation Program, a $1.1 billion investment by the Department of Defence to deliver a safer, simpler and assured Defence fuel network,” RADM Murray said.

"One key aim of this program is to generate greater industry collaboration across our fuel network.

“By working in partnership with industry experts, we are adopting industry best practice as well as providing opportunities for Australian industry.

The contract for the fuel facility at HMAS Cairns is for an initial term of six years, with two three-year extension options.