Petrofac fetches over $120 million with new deals

  • Business & Finance

Oilfield services provider Petrofac has been awarded contracts and extensions with a combined value of more than $120 million.

Source: Petrofac

Petrofac said on Wednesday that its Engineering & Production Services (EPS) had secured a new three-year Engineering, Procurement, Construction, and Commissioning (EPCC) Framework Agreement (FA) with a North Sea operator.

Future projects undertaken through the FA will be supported by Petrofac’s Aberdeen office, where the company is growing its engineering team and investing in its brownfield management system in support of its digitalization strategy.

The new brownfield projects awards coincide with key North Sea contract extensions for EPS, including a two-year renewal of an existing seven-asset Operations and Maintenance contract, and the extension of EPS’ existing Engineering Services contract with Chevron North Sea to June 2020. The previous extension with Chevron was agreed in October 2018.

Under this contract scope, Petrofac has been providing engineering support to Chevron’s key North Sea assets including the Alba Northern, Erskine, and Captain platforms, as well as the Alba floating storage unit and Captain floating, production, storage and offloading vessel.

However, it is worth reminding that Ithaca Energy earlier in November completed the $2 billion purchase of Chevron North Sea Limited, Chevron’s subsidiary operating several UK North Sea fields.

Petrofac’s EPS has also secured its first small-scale Engineering, Procurement, Construction (EPC) contract in Malaysia.

In consortium with partner Serba Dinamik, EPS has been awarded a contract by Asean Bintulu Fertiliser (ABF), one of Malaysia’s largest fertiliser plants, for its Third Boiler Project. The work scope for the 30-month project includes basic and detailed engineering, procurement, construction and commissioning of an additional package boiler to improve overall plant reliability and availability and meet total steam demands of 510 tph.

John Pearson, Chief Operating Officer, Engineering and Production Services, said: “Continued diversification into new markets, such as brownfield projects, and new geographies, such as Malaysia, are key tenets of our growth strategy. We’re also once again delighted that clients in the North Sea have exercised the option to extend our support for important Operations and Maintenance and Engineering Services contracts.”

Petrofac also said on Wednesday it had signed a sale and purchase agreement with the shareholders of W&W Energy Services to acquire an entry-level position in the US onshore Operations and Maintenance market. W&W offers Maintenance, Repair & Overhaul and Pipeline tie-in services in the Permian Basin.

Offshore Energy Today Staff

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