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Opinion: Strong Buy
Posted: October 4, 2021
4 October 2021
STATEMENT ON FINAL OUTCOME OF SFO INVESTIGATION
Following the announcement of Friday 1 October 2021, Petrofac Limited (the "Company" or "Petrofac") announces that Southwark Crown Court today imposed a total penalty of GBP 77 million (approximately US$104.6 million at current exchange rates) in relation to seven historic offences of failing to prevent former Petrofac Group employees from offering or making payments to agents in relation to projects awarded between 2012 and 2015, contrary to Section 7 of the UK Bribery Act 2010. All employees involved in the charges have left the business. This concludes the Serious Fraud Office's investigation into the Company.
In determining the penalty, the Court and the Serious Fraud Office acknowledged Petrofac's corporate reform through its transformation of the Company's leadership, personnel, compliance and assurance processes.
The penalty is comprised of the following elements: a confiscation order of GBP 22.8 million payable by 3 January 2022; a fine of GBP 47.2 million payable on 14 February 2022; and the Serious Fraud Office's costs of GBP 7 million payable on 14 February 2022.
Chairman René Médori said: "This draws a line under a regrettable period of our history. We have taken responsibility, reformed and learned from these past mistakes, as acknowledged by the SFO and the Court. Most importantly, the extensive work that we have done since the SFO investigation began means that the Petrofac of today has a comprehensive compliance and governance regime that meets or exceeds international best practice. The past behaviour uncovered by the SFO would not be possible today, and we look to the future a better and more focused company, well positioned to capitalise on the opportunities we see before us."
Group Chief Executive Sami Iskander said: "We are now in a position to put this behind us. This part of our history does not represent the Petrofac of today - a company that as its new CEO I am proud to lead, and which operates upon the core principle of ethical business conduct, supported by a comprehensive governance regime. We have refined our best-in-class delivery capabilities, restructured the business around technical excellence, re-focused on our customers, hired new talent, and further sharpened our cost-competitiveness.
"We emerge from this cloud as the world needs more energy - both traditional energies that can be produced in the most efficient manner, and renewable energies on which a lower carbon world can be built. Petrofac is well positioned to support both, with the capabilities, experience, and expertise to deliver for our expanding customer needs. Our markets in both traditional and new energies are growing and we have a clear path to rebuild our business with a differentiated customer proposition that sets us apart."
This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.
Opinion: No Opinion
Posted: October 1, 2021
1 October 2021
STATEMENT ON SFO INVESTIGATION
Following the announcements issued on Friday 24th September and Monday 27th September 2021, Petrofac Limited (the "Company" or "Petrofac") announces that the sentencing hearing at Southwark Crown Court commenced today and sentencing of the Company for historic offences under Section 7 of the UK Bribery Act 2010 is scheduled to take place on Monday 4th October 2021.
As announced on 24th September, the penalty will be determined at the sole discretion of the Court. The Joint Submission to the Court by the Company and the SFO details a potential penalty of US$240 million prior to the application of any adjustment to the level of fine ("step back"). The Company has made a submission to the Court for a substantial reduction based on alternative approaches to sentencing and its ability to pay. The Court may also take into account the SFO's recognition that Petrofac is a changed company with transformed leadership, personnel, compliance and assurance processes.
The Company will make a further announcement following sentencing.
Petrofac is currently undertaking a comprehensive review of refinancing options to create a sustainable, long-term capital structure with appropriate leverage, liquidity and duration to support the delivery of the Company's strategic plan. This process includes the assessment of all available options including but not limited to revolving credit facilities with the Company's lending banks, accessing public debt capital markets, and additional equity capital, to best position the Company to take advantage of its strong presence in its attractive target markets.
Petrofac has a well-developed, comprehensive compliance and governance regime. This is supported by a dedicated compliance and investigations team, new systems and technologies, mandatory training and a company culture based on ethical business conduct and transparency. Its compliance regime is championed, supported, and overseen at local, divisional and Board level, and supplemented by regular independent audit.
Opinion: Strong Buy
Posted: September 24, 2021
24 September 2021
STATEMENT ON RESOLUTION OF SFO INVESTIGATION
Petrofac Limited (the 'Company' or 'Petrofac') announces that it has reached a plea agreement with the UK Serious Fraud Office (SFO) in relation to its investigation into the Company's historical use of agents.
Pursuant to this plea agreement, the Company has today indicated guilty pleas to seven counts of failing to prevent former Petrofac group employees from offering or making payments to agents in relation to projects awarded between 2012 and 2015 in Iraq, Kingdom of Saudi Arabia and the UAE, contrary to Section 7 of the UK Bribery Act 2010. These offers or payments were made between 2011 and 2017. All employees involved in the charges have left the business.
A sentencing hearing is scheduled to take place at Southwark Crown Court commencing on Monday 27 September 2021. The Company will make a further announcement following sentencing or any adjournment.
The penalty will be determined at the sole discretion of the Court. It may take into account submissions by the Company as to its ability to pay, along with the SFO's recognition that Petrofac is a changed company with transformed leadership, personnel, compliance and assurance processes.
Chairman René Medori said: "This was a deeply regrettable period of Petrofac's history. We are committed to ensuring it will never happen again. We have fundamentally overhauled our compliance regime, as well as the people, and the culture that supports it. Our comprehensive programme of corporate renewal has been acknowledged by the SFO. Petrofac has been living under the shadow of the past, but today it is a profoundly different business, in which stakeholders can be assured of our commitment to the highest standards of business ethics, wherever we operate."
Group Chief Executive Sami Iskander said: "With my new management team we are rebuilding the company into a new Petrofac that's relevant for the future, across both traditional and new energies, built on a foundation of the highest ethical standards."
Petrofac, today, has a well-developed, comprehensive compliance and governance regime. This is supported by a dedicated compliance and investigations team, new systems and technologies, mandatory training and a company culture based on ethical business conduct and transparency. Its compliance regime is championed, supported, and overseen at local, divisional and Board level, and supplemented by regular independent verification. Agents are no longer used other than where required by law and are subject to enhanced audit and additional controls.
Opinion: Strong Buy
Posted: September 3, 2021
3 September 2021
PETROFAC SECURES LIBYA EPCC CONTRACT
Petrofac has secured a contract valued at over US$100 million with Zallaf Libya Oil & Gas Exploration and Production Company, to deliver their Erawin Field Development Project Phase 1 Early Production Facilities.
The Engineering, Procurement, Construction and Commissioning (EPCC) scope of work encompasses surface equipment, including well pads and flowlines at the Erawin oil field, located in southwest Libya. It also includes a pipeline to transport crude oil around 100 kilometres to the El Sharara oil field and a control room, substation and telecom system located there.
Libya holds some of the largest oil reserves in Africa. Zallaf was established in 2013 to develop fields that have been discovered and appraised but not yet produced. It is a 100% subsidiary of the National Oil Company. In addition to this latest contract award, Petrofac is also currently providing Front-End Engineering Design (FEED) and conceptualisation studies, both upstream and downstream, for a number of clients in-country, with wider opportunities to position for EPC delivery.
Elie Lahoud, Chief Operating Officer - Engineering & Construction, commented: "Libya is positioning itself to become a major oil and gas producer again and we're looking forward to helping the National Oil Company achieve its goals, develop key infrastructure safely and securely, and increase production. Petrofac has been delivering complex projects, engineering services and training local workforces in North Africa for over 20 years now. This latest award builds on our strength of engineering and construction capability and track record of effective delivery."
Opinion: No Opinion
Posted: May 10, 2021
Petrofac has secured a contract with bp to develop operational procedures for their Greater Tortue Ahmeyim (GTA) Project in Mauritania and Senegal.
Centred on minimising risk and harm to personnel, plant and the environment, the procedures will encompass all offshore operations, including subsea, floating production storage and offloading (FPSO) and hub.
Steve Webber, SVP Operations, said:
bp is an important longstanding client and we look forward to supporting them in operating safely and responsibly, in their delivery of the GTA Phase 1 Project, which is creating a new LNG hub in Africa.
The Tortue/Ahmeyim gas field, with estimated resources of 15 trillion cubic feet of gas, is located offshore on the border between Mauritania and Senegal. The integrated gas value chain and near-shore liquefied natural gas (LNG) development will export LNG to global markets as well as supplying gas to Senegal and Mauritania.
Opinion: Strong Buy
Posted: April 7, 2021
Petrofac shares surged on Wednesday after the oilfield services provider said it has extended $700m of its banking facilities and that net debt is set to be better than expected.
With the "unanimous support" of its lenders, Petrofac has secured a $610m extension of its existing revolving credit facility to 2 June 2022, with an option to extend for a further six months, and a $90m extension of its bilateral term facility with Abu Dhabi Commercial Bank to 1 April 2022.
The increase in margin on these facilities reflects market conditions and remains competitive, the company said.
Existing financial covenants remain unchanged and will be tested on a quarterly basis. In line with Petrofac's liquidity policy, the extended revolving credit facility includes a minimum liquidity covenant of $100m.
Petrofac said the revised facilities of $700m represent a reduction in facility size of $450m, "in line with business requirements and reflecting the group's transition to a capital light business model". Both facilities were due to be repaid or prepaid on or before 2 June.
"The extension of these facilities, together with the issue of £300m in commercial paper under the Covid Corporate Financing Facility in February 2021, preserve the group's strong liquidity position which was $1.3bn at 31 March," it said.
The group now expects to report net debt of $116m as at 31 December 2020, better than expectations, and said it continues to target eliminating net debt "as market conditions and contract awards recover".
At 1300 BST, the shares were up 8.6% at 105.70p.
Opinion: Strong Buy
Posted: February 15, 2021
Petrofac, Repsol Sinopec Resources UK and TechnipFMC announce today the formation of an innovative industry alliance which seeks to maximise the recovery of oil and gas from the UK Continental Shelf (UKCS).
The partnership will work together to offer the owners of oil and gas discoveries near Repsol Sinopec’s existing North Sea infrastructure hubs an integrated, technically robust and commercially flexible solution to meet their near to mid-term development objectives.
Under the terms of the partnership, Petrofac will provide all services associated with topsides engineering and operations support, whilst TechnipFMC will deploy its *iFEED® front-end engineering and design solution and its integrated subsea business model, **iEPCI™. Repsol Sinopec will provide access to its facilities under the industry-led infrastructure code of practice. Together, the group offers decades of subsea and topsides engineering, project management and operating expertise to create an all-encompassing offering, from the well head to export route.
Nick Shorten, Managing Director of Petrofac's Engineering and Production Services, West business said:
With more than three billion barrels locked in marginal fields across the UKCS, small pools represent a big opportunity. Industry level collaborations such as this, will drive the standardisation required to reduce the time and cost of tie-back developments. Petrofac is thrilled to combine the asset knowledge gained as Repsol Sinopec’s operations and maintenance partner, with our engineering and project management expertise in support of this exciting collaboration.
Jose Luis Muñoz, CEO Repsol Sinopec said: “As an industry we must get better at recognising the benefits of utilising existing North Sea infrastructure to maximise the economic recovery of the basin, minimise carbon emissions and transition to a lower carbon economy. This industry collaboration brings together three well respected, experienced companies that have the resources, drive and ambition to support the continued success of the industry for many years to come.”
Jonathan Landes, President Subsea, TechnipFMC, said: “We are delighted to play a part in helping to maximise recovery of oil and gas from the UK Continental Shelf. Leveraging our integrated subsea business models, iFEED® and iEPCI™, we are ideally placed to support and optimize future development opportunities from early concept to first production and beyond while minimising the carbon footprint. With a shared commitment to excellence in Health, Safety, Environmental and Quality standards, we look forward to working with Repsol Sinopec to deliver a culture of efficiency, standardisation and sharing of best practice as we adopt this unique and important alliance in the UK.”
*iFEED® TechnipFMC’s iFEED® front-end engineering and design solution combines the scope of SPS and SURF to deliver a full field subsea architecture design.
** iEPCI™ integrated Engineering, Procurement, Construction and Installation.
Opinion: Strong Buy
Posted: February 15, 2021
Petrofac’s Engineering and Production Services (EPS) division has further strengthened its global Well Engineering portfolio following the award of a drilling management services contract with Carnarvon Petroleum.
The agreement supports Carnarvon’s Buffalo redevelopment, offshore East Timor in the Timor Sea, and includes planning, detailed well design, drilling execution and all associated procurement. The scope, which will be managed via Petrofac’s Well Engineering group in Perth, Australia, follows a competitive tender process.
Nick Shorten, Managing Director of Petrofac EPS (West) commented: “Globally our Well Engineering experts have drilled over 400 wells for 100 operators. We very much look forward to deploying that experience in support of Carnarvon’s exciting advancement in East Timor.
Carnarvon Managing Director and CEO, Adrian Cook, said: “Petrofac is an established and highly experienced global energy services provider and is well suited to ensure the success in the Buffalo project. They have already made encouraging progress in assessing our well plans, reviewing drilling rig alternatives and assessing the necessary long lead items for drilling. We look forward to an exciting year”.
Opinion: Strong Buy
Posted: February 9, 2021
Petrofac to deploy global decom expertise in Australia, in contract first
Petrofac’s Engineering and Production Services (EPS) business has strengthened its presence in Australia, having secured a Well Project Management contract in the country with PTT Exploration and Production (PTTEP).
Under the terms of the agreement, Petrofac will provide all project manpower to enable the execution of plug and abandonment operations on two of PTTEP’s remaining subsea wells in the Vulcan Basin, located in North West Australia. Work will include detailed planning, procurement services including tender for a semi-submersible rig, and management of operations and sub-contracted services.
Today’s announcement builds on Petrofac’s ongoing expansion in Australasia and reflects the continued global growth of its Well Engineering capabilities.
Commenting, Nick Shorten, Managing Director for Petrofac Engineering and Production Services (West), said: “The award of this contract is testament to our track record for delivering Well Engineering and decommissioning services for our clients globally. Our teams have operated in Australia for more than a decade working on some of the region’s largest energy developments, but we are particularly excited to be deploying our Well Project Management capability and expertise there for the first time.
“When it comes to decommissioning, we understand the focus on cost and schedule is as important as ever. We look forward to working closely with PTTEP to deliver a safe and predictable plug and abandonment campaign.”
Opinion: Strong Buy
Posted: February 4, 2021
4 February 2021
PETROFAC SECURES PETROLEUM DEVELOPMENT OMAN CONTRACTS
Petrofac has been awarded two contracts, together worth around US$300 million through Petroleum Development Oman (PDO).
The first is a direct EPC contract for PDO's Marmul Main Production Station (MMPS) - Gas Compression project. The scope of work for the 30-month, lump-sum turnkey contract includes engineering, procurement, construction, commissioning, start-up and initial operational support.
Located at Marmul in the South of Oman, approximately 800 kilometres from Muscat, the purpose of the new facility is to eliminate permanent flaring and manage associated gas. The work includes gas recovery and booster compressors, gas sweetening, dehydration and other units, utility systems and modification of existing facilities.
The second is a project delivery contract with Petrofac's partner and main PDO contract holder Arabian Industries Projects LLC, for selected PDO concession areas in the North of Oman. The scope of this seven-year contract is for provision of reimbursable engineering services, integrated project support and management services, and has an option to extend for three years.
In line with the main objectives of the integrated project services part of this contract, Petrofac will ensure the effective management, control, execution and documentation of changes and additions to production facilities through specific technical studies related to concept development, development of front-end engineering design (FEED) and detailed design.
Elie Lahoud, Chief Operating Officer - Engineering & Construction, commented: "Petrofac has a significant track record in Oman and PDO are a longstanding client. We look forward to building on our strong relationship through these latest contract awards. Both will be delivered by our teams in the Sultanate, with the focus on safety, maximising local and sustainable delivery, and generating In-Country Value."
Petrofac has been serving Oman's energy industries for more than 30 years and during this time has:
Established a multi discipline engineering and project execution office in Muscat
Invested US$30 million in a state-of-the-art technical training centre with its partner Takatuf Petrofac Oman (TPO)
Developed a highly capable workforce, with over 30% Omanisation in the Sultanate
Recorded multi-billion-dollar ICV contribution to Oman's economy in respect of the purchase of Omani goods and services
Opinion: Strong Buy
Posted: February 3, 2021
Rye Bay Capital close 3.53% net short position in Petrofac.
As of 02 Feb, 2021, Rye Bay Capital LLP hold 0.00%; according to a source.
Posted: August 6, 2020
Petrofac and Storegga partner on renewable energy
Petrofac and Storegga Geotechnolgies have joined forces to collaborate on potential business development and project initiatives in carbon capture and storage (CCS), hydrogen and other low carbon projects.
To solidify the commitment, the companies today the signed a Memorandum of Understanding that builds new energy capability and capacity, representing a strategic step in Petrofac’s continued expansion into new and renewable energy.
With an initial focus on the UKCS and North West Europe, the MOU also includes scope for the parties to work together internationally.
John Pearson Petrofac Engineering & Production Services’ Chief Operating Officer, and Global Corporate Development Officer, commented “We are delighted to develop this strategic partnership with Storegga, who have a bold ambition to establish themselves as an operator of low carbon technology projects.”
“Like our existing offshore wind portfolio, CCS, hydrogen and other low carbon technologies require the complex engineering, project management and asset management capability we have developed in oil and gas.”
Nick Cooper, Chief Executive of Storegga Geotechnologies, added, “There is great value in Storegga working with companies such as Petrofac to bolster our engineering and project management capability. This will enable Storegga to accelerate the delivery of our CCS and hydrogen projects in support of the energy transition.”
Posted: August 5, 2020
Petrofac shares details of potential upcoming contracts
Petrofac has shared details of a number of contracts that will potentially be put out to tender over the next year.
Cheryl McRae, subcontract team lead for the energy services firm’s engineering and production services west division, said they have come up with a “rigorous” tender plan in response to the Covid-19 pandemic and collapse in oil and gas prices.
The potential contracts include work for a number of major players in the North Sea, including Shell, Neptune Energy and EnQuest.
Over the last year, Petrofac, which provides duty holder services for numerous North Sea operators, has tendered around £100 million worth of work.
However, bosses are keen to point out that, with uncertainty still rife in the sector, contracts could be subject to change.
Ms McRae said yesterday at an Oil and Gas UK share fair event: "In light of the current circumstances that we’re facing just now, that being the pandemic and the low oil price, we have re-looked at our tender plan."
"We’ve come up with a rigorous plan but it’s not set in stone. There’s every chance these contracts will change going forward and it all depends on the priorities within our organisation."
The contracts that Petrofac plans to tender over the next 12 months and the assets they relate to are:
Ithaca Energy – FPF-1
· Maintenance support for nucelonic services
· Telecom services
· VSAT services
Anasuria Operating Company – Anasuria FPSO
· ESD support
· Chemical management services
EnQuest – Kittiwake
· Structural analysis
· Pump management service
· Electrical support services
Petrogas Neo – GP3
· Quayside services / chartering
· Nitrogen gas equipment rental
· Rental of methanol bund and compressors
· Lube oil analysis and tank hire
· Rental services
· Provision of piping vibration and stress management analysis
· Provision of flow metering computer systems support
· Provision of sample analysis and offshore chemist services
· Provision of process control and instrumentation consultancy
· Annual pumps health check
· Helideck netting maintenance and certification
· Door maintenance
· Overhaul and service of diesel engines
· Firefighting equipment and maintenance
· Battery maintenance and testing
· Flexible hose assembly inspections and remedials
· UPS maintenance services
· Corrosion management services
ENI – Hewett
· Underwater services contract 2020-23
· SNS X Asset independent verification and recertification of lifting equipment services
· SNS X Asset provision of electrical and instrumentation services
ENI – Liverpool Bay ISP
· Ignition control
· Protection system
· Marine integrity propulsion system
· Structural integrity scopes
Multiple clients – Corporate, Master Services Agreement
· Piping bulks
E&C – Various Assets
· Manual valves
Neptune Energy – Cygnus Alpha
· Biocide injection package
· Oxygen scavenger injection package
Repsol Sinopec Resources UK – Montrose/Bleo Holm
· Shutdown/control valves
· Pig launcher/receiver
· Heat exchangers
· Circulation pumps
· Module fabrication
· Expansion vessels
Shell – Clipper
· Nitrogen injection package
Multiple clients – Corporate (industrial services)
· Coating – paint supply
· Insulation – material supply
· Blasting – material supply
· Passive fire protection – material supply
· Composite repair
· Scaffold – Access platforms
· Asbestos management
Multiple clients – Corporate
· Supply of stationary and office consumables
· Provision of occupational health and medical services
· External legal council services
Posted: July 23, 2020
Shares in Petrofac (LON:PFC) are currently trading at 170.3 but a key question for investors is how the economic uncertainty caused by Coronavirus will affect the price. One way of making that assessment is to examine where its strengths lie...
The market price in Petrofac shares has moved by 14.3% over the past three months. In volatile markets, many investors are keen to buy what they think are cheap stocks - but it's essential to recognise the difference between a genuine bargain and a value trap. Often, the quality of the stock makes all the difference.
The good news is that Petrofac scores well against some important financial and technical measures. In particular, it has strong exposure to two influential drivers of investment returns: high quality and a relatively cheap valuation.
Buying quality at a fair price
Good quality stocks are loved by the market because they're more likely to be solid, dependable businesses. Profitability is important, but so is the firm's financial strength. A track record of improving finances is essential.
One of the stand out quality metrics for Petrofac is that it passes 6 of the 9 financial tests in the Piotroski F-Score. The F-Score is a world-class accounting-based checklist for finding stocks with an improving financial health trend. A good F-Score suggests that the company has strong signs of quality.
While quality is important, no-one wants to overpay for a stock, so an appealing valuation is vital too. With a weaker economy, earnings forecasts are unclear right across the market. But there are some valuation measures that can help, and one of them is the Earnings Yield.
Earnings Yield compares a company's profit with its market valuation (worked out by dividing its operating profit by its enterprise value). It gives you a total value of the stock (including its cash and debt), which makes it easier to compare different stocks. As a percentage, the higher the Earnings Yield, the better value the share.
A rule of thumb for a reasonable Earnings Yield might be 5%, and the Earnings Yield for Petrofac is currently 15.0%.
In summary, good quality and relatively cheap valuations are pointers to those stocks that are some of the most appealing to contrarian value investors. It's among these shares that genuine mispricing can be found. Once the market recognises that these quality firms are on sale, those prices often rebound.
Opinion: No Opinion
Posted: July 22, 2020
Now in its final stages, work continues to progress well at the Salalah LPG extraction project in Oman for OQ LPG (SFZ) LLC.
In numbers, this video shows the progress the Salalah team has made. Well done to everyone involved👏.
Find out more about the project: https://bit.ly/2E5Yev5
Watch the video
Opinion: No Opinion
Posted: April 16, 2020
RNS Number : 8559J
16 April 2020
16 April 2020
DALMA PROJECT UPDATE
Petrofac Ltd ("Petrofac" or "the Company") announces that its Petrofac Emirates joint venture has received notice of termination from Abu Dhabi National Oil Company (ADNOC) of two recently awarded contracts for the Dalma Gas Development Project. Petrofac is committed to working with ADNOC over the coming weeks to explore alternative options to deliver this project in a way that supports their strategic objectives within the current challenging environment.
The project, worth around US$1.65billion, and awarded in February 2020, comprised two packages. Petrofac Emirates' portion of the scope of work is valued at US$1.5billion.
Petrofac continues to progress execution of its remaining Group backlog of around US$7billion as planned and is still progressing with tendering for major contracts in Abu Dhabi. However, it anticipates this development may have an impact on the timing of their awards.
Opinion: No Opinion
Posted: March 24, 2020
Sharjah National Oil Corporation (SNOC), today announced that its Moveyeid Gas Storage Surface Facility Project has been awarded to Petrofac Facilities Management International Limited
Posted: February 20, 2020
Petrofac awarded US$40 million project by Sharjah National Oil Corporation
Petrofac’s Engineering & Production Services division (EPS) has been awarded an engineering, procurement, construction and commissioning (EPCC) contract by Sharjah National Oil Corporation (SNOC), worth around US$40 million, for a project in the United Arab Emirates.
The award demonstrates delivery against EPS’s strategy to secure smaller greenfield and brownfield EPC projects, utilising its footprint and infrastructure in existing core markets.
Mani Rajapathy, Managing Director, EPS East, commented:
“We are delighted to be awarded this contract by Sharjah National Oil Corporation, a longstanding Petrofac client that we have worked with successfully for many years. The award is important strategically as EPS looks to develop its track record in smaller greenfield and brownfield EPC projects. It also leverages Petrofac’s best-in-class expertise and experience in upstream gas and represents another win in one of our core markets of Sharjah and the UAE. We look forward to delivering a safe and successful project for SNOC.”
Petrofac has been present in the UAE since 1991. The Group employs around 3,000 people in country, many of whom are based at Petrofac’s major operational centre in Sharjah.
Posted: February 18, 2020
PETROFAC AWARDED US$1.65 BILLION CONTRACTS FOR ABU DHABI MEGA PROJECT
Petrofac Emirates has been awarded two contracts, together worth around US$1.65 billion with Abu Dhabi National Oil Company (ADNOC) in the United Arab Emirates.
The engineering, procurement (including novated long lead items), construction, transportation, offshore installation and commissioning contracts are for ADNOC's Dalma Gas Development Project. The work scope encompasses offshore packages at Arzanah island and surrounding offshore fields, located around 140 km off the north-west coast of the Emirate of Abu Dhabi.
The first package, valued at US$1.065 billion, is for gas processing facilities at Arzanah island. Under the terms of the 33-month lump-sum contract awarded to Petrofac, the scope of work includes inlet facilities with gas processing and compression units, power generation units, utilities and other associated infrastructure.
For the second package, valued at US$591 million, Petrofac is leading a Joint Venture with SapuraKencana HL Sdn. Bhd. Abu Dhabi. Under the terms of the 30-month lump-sum contract, the scope of work includes three new well-head platforms, removal and replacement of an existing topside, new pipelines, subsea umbilicals, composite and fibre optic cables.
The Dalma project is a key part of the Ghasha ultra-sour gas concession which is central to ADNOC's strategic objective of enabling gas self-sufficiency for the UAE.
George Salibi, Chief Operating Officer - Engineering & Construction, commented: "Petrofac has a strong track record in the UAE, with a presence here since 1991 and around 3,000 staff in country. We are fully committed to supporting continued and sustainable investment in Abu Dhabi's oil and gas industry through our strategic focus on maximising local delivery, and are pleased that our approach will generate substantial In-Country Value for the local economy. These latest contract awards build on our existing relationship with ADNOC Group companies and we look forward to delivering this mega project in a safe, successful and sustainable manner."
Established in the UAE in 1991, with operational centres in Abu Dhabi and Sharjah, Petrofac has executed 11 major EPC projects in-country to date. Recent projects include the Upper Zakum UZ750 project, Qusahwira Field Development Phase II, the Satah Al Razboot (SARB) Package 3, the contract for expansion of compression facilities at the Bab field and development of the Bab Habshan-1 project.
Opinion: No Opinion
Posted: January 21, 2020
Started 20 January,2020.
For Mention - Case Started 01/11/2019 09:58
For Pre - Trial Review 16/12/2019 09:59
For Trial - Case Started 20/01/2020 10:34
For Trial - Case adjourned until 11:15 20/01/2020 10:53
For Trial - Resume 20/01/2020 12:03
For Trial - Case adjourned until 14:00 20/01/2020 12:27
For Trial - Legal Submissions 20/01/2020 15:05
Trial (Part Heard) - Resume 21/01/2020 10:13