Petrofac lands new North Sea deal worth $50 million
Oilfield services provider Petrofac has been selected by Petrogas NEO UK – a jointly owned company created by Petrogas E&P UK and NEO Energy, a portfolio company of private equity fund HitecVision – to establish its new North Sea operation following its recently announced asset acquisition.
Namely, in July last year, Total agreed to sell $635 million worth of UK North Sea assets to Petrogas NEO UK. These assets, located in the Eastern North Sea, were formerly owned by Maersk Oil.
Under the deal, Total sold its stakes in Dumbarton, Balloch, Lochranca, Drumtochty, Flyndre, Affleck, and Cawdor fields, all of which it operated. Total also divested its ownership in CNOOC-operated fields Golden Eagle, Scott, and Telford.
Announcing the contract award on Wednesday, Petrofac said that the two-year deal was valued in the region of $50million and under it the company would integrate the services of its Operations, Projects and Well Engineering service lines.
As well as assisting in the transition of operations on the Quad 15 & Flyndre area assets, Petrofac will also provide ongoing operational, maintenance, engineering and construction support; and deliver well engineering and project management support services for Petrogas NEO UK’s activities.
Commenting on the award, Nick Shorten, Managing Director for Petrofac’s Engineering and Production Services (EPS) business in the Western Hemisphere, said: “This agreement represents a significant new strategic partnership for Petrofac in our core UK market. Our ability to seamlessly integrate services across the asset lifecycle, will ensure Petrogas NEO UK’s requirements are efficiently supported as it seeks to safely and responsibly extend field life.”
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