AAP

West Australian opposition claims that local companies are being sidelined for work on major projects has been undermined with a WA-based fabrication and construction company being awarded a $50 million contract for the country's largest ever gas project.

Chevron Australia's managing director, Roy Krzywosinski, joined WA Premier Colin Barnett in announcing AGC Industries has been awarded the contract to supply pipe spools - steel constructions used to connect pipe - for the Gorgon project.

The $43 billion Gorgon project off the northwest WA coast is one of the world's largest natural gas projects.

The contract between the project's dominant partner Chevron and AGC, a subsidiary of AusGroup, involves the fabrication of about 7500 tonnes of pipe spools and will result in the employment of 150 people - 50 of the positions are new jobs.

" I think it's a great day for AGC, it's a great day for Chevron and it's an encouraging sign for the future of local fabricators," Mr Krzywosinski told reporters at the industrial hub of Henderson, south of Perth.

" I think it demonstrates local fabrication can compete on an international basis as this contract was bid for by both local and international fabricators."

He said he was optimistic there would be similar announcements in the not too distant future.

The WA opposition has attacked the government for letting work on major resources go offshore and have introduced a private member's bill to address the issue.

The Skilled Locals Jobs Bill would force companies to reveal the level of local work on major state projects and if they have used offshore contractors, the reasons why.

AusGroup's CEO, John Sheridan, said he believed the tendering process for the Chevron project had been conducted in a " full, fair and open way" .

" The way we look at securing a tender, it's all to do with capacity capability," Mr Sheridan told reporters.

Mr Krzywosinski said Chevron had so far awarded $10 billion worth of contracts to local firms on the Gorgon project.

He said Chevron was working with government and industry to break down the scope of some of the large contracts to ensure it can meet the capabilities of the local industry.

" It's in our best interest that we do have a very vibrant, local content, local industry that can support our operations for the next 30 years (because) construction is only a five-year period," Mr Krzywosinski said.

Mr Barnett said he believed WA's fabrication and manufacturing sector would continue to see more activity in the coming months.