Repsol Sinopec expands Petrofac’s scope of support on UK assets
- Business & Finance
Oilfield services provider Petrofac is preparing to extend its provision of operations and maintenance services to Repsol Sinopec Resources UK following enhancement to its existing contract.
Petrofac said on Thursday that it would provide operations and maintenance support across six additional Repsol Sinopec assets.
According to the company, around 200 individuals supporting the Claymore, Tartan, Clyde, Montrose, Arbroath, and Bleo Holm assets will transfer to Petrofac, following a period of transition.
Petrofac already supports six of Repsol Sinopec’s UK assets under this contract, which was most recently extended in September 2019.
Offshore personnel will be supported and deployed via Petrofac’s dedicated operations hub, through which all of its operations and maintenance contracts are managed.
Nick Shorten, managing director for Petrofac engineering and production services, said: “Since our initial appointment in 2016, our scope of support for Repsol Sinopec has grown steadily and the inclusion of this additional asset group demonstrates our client’s continued confidence in our delivery.
“We are delighted and very much look forward to continuing our support of Repsol Sinopec’s late-life strategy, through safe and effective operations”.
To remind, Petrofac recently decided to reduce its capex by 40 per cent, reduce salaries across the company, and reduce its personnel by about 20 per cent in response to unprecedented market conditions.
Petrofac’s actions include reducing overhead and project support costs by at least $100 million in 2020 and by up to $200 million in 2021.
The company’s actions also include conserving cash and liquidity by reducing capex by 40 per cent and suspending the 2019 final dividend.