Viva Energy signs lucrative $2.7bn Australian Defence Force fuel supply contract

A Geelong-based fuel refinery has secured a $2.7bn defence force contract in a major economic windfall for the city. SEE THE DEAL

Viva Energy CEO Scott Wyatt at their Geelong refinery, which has been awarded a lucrative Australian Defence Force fuel supply contract. Aaron Francis/The Australian

Geelong’s Viva fuel refinery has secured a lucrative $450m-a-year defence force contract in a major economic windfall for the city.

Viva Energy will produce and supply specialist military aviation fuel to the Australian Defence Force for at least the next six years in a landmark deal worth an estimated $2.7bn.

The Corio facility is one of only two remaining oil refineries in the country and employs about 1000 people.

Defence Industry Minister Pat Conroy said the contract would see the company produce fuel for ADF aircraft and could be extended to 12 years.

Viva Energy refuelling a C17 Australian Defence Force aircraft.

Viva Energy chief executive, Scott Wyatt, called the agreement “significant” not only for Geelong but “the commitment to the nation’s energy security”.

Defence currently imports the specialist fuel and it has not been produced locally since 2013.

“We are delighted to extend our strategic relationship with the commonwealth and look forward to supporting the ADF’s Australian and international fuel requirements as a key enabler of their capability,” Mr Wyatt said.

As part of the deal, Viva will resume production of the military-specification aviation turbine fuel used on aircraft carriers, for machines such as F44 navy helicopters.

Deputy Prime Minister and Defence Minister Richard Marles (right) and Defence Industry Minister Pat Conroy (left) following the release of the Defence Strategic Review Pic: Pema Tamang Pakhrin

“Currently, this high-flash jet fuel is manufactured and imported from overseas,” he said.

Minister Conroy said the contract would have a significant impact on the city.

“Coming after years of declining local oil refining and fuel production, this will be good for Australia’s defence, good for Australia’s energy security and good for Australian jobs,” he said.

“We are really pleased about the difference this will make in the regional centre of Geelong.”

Viva will supply fuel to all Defence Fuel Installations around Australia and the RMAF Base Butterworth in Malaysia under the new agreement.

An Australian Defence Force vessel refuelling at Viva Energy's Gore Bay Terminal.

Viva will also be responsible for fuel supply to ADF aircraft and vessels at all commercial airports, ports and marinas across the country and around the world.

It comes three years after the energy giant announced plans to transform the Geelong refinery into an energy hub, with plans under way to construct a hydrogen refuelling station in Corio and a controversial floating gas terminal proposal moving through a state approvals process.

Viva also plans to build a new unit capable of processing low-sulphur fuel at the base.

Originally published as Viva Energy signs lucrative $2.7bn Australian Defence Force fuel supply contract