Petrofac flying in the face of the credit crunch
Can the UK-based contractor keep winning big MENA region contracts?
If you are one of the lucky people who bought a bundle of Petrofac shares at the turn of the year when they were trading at around the $5 mark (they are now $14.85), then it's more likely that you are strolling around an Aston Martin showroom right now instead of reading the ArabianOilandGas.com blog.
However, this credit crunch defying rise, coupled with the 20% hike in first half profits is no fluke. The UK based company is right up there with France's Technip as a top performer in the oil and gas contracting sector in 2009 and looking at its recent awards in the region it doesn't take a genius to work out why.
So can it top the first half of 2009 in the second half? The rumours circulating around the industry say that it is on the verge of yet another major contract award, but our sources are unfortunately remaining tight lipped as to where and what it is. If anyone can shed some light, then please drop us an email.
Petrofac's major MENA region contract awards in 2009
Asab oil field development (UAE)
Value: $2.3 billion
Under the 44-month lump-sum contract, awarded by Abu Dhabi Company for Onshore Oil Operations (ADCO), Petrofac will provide engineering, procurement and construction (EPC) services to upgrade the production capacity of the onshore field.
El Merk central processing facility (Algeria)
Value: $2.2 billion
Petrofac will carry out the EPC contract for the El Merk central processing facility (CPF) in the Berkine Basin in Algeria for the state-owned energy giant Sonatrach
The international oil and gas facilities service provider will execute the project over the next 44 months, with first significant volumes expected in 2012.
Ruwais NGL train joint venture (UAE)
Value: $1 billion (to Petrofac - $2.1 in total)
Abu Dhabi Gas Industries Ltd. (GASCO) awarded the 48-month lump-sum contract for the construction of the 4th NGL train at the Ruwais complex in Abu Dhabi to a joint venture between Petrofac and South Korean contractor GS Engineering & Construction.
Kauther gas-field (Oman)
Value: $350 million
Petrofac will undertake the EPC of the gas compression system, and associated facilities at the Kauther gas plant, in addition to undertaking the commissioning and six months of initial operations.
Karan gas development project (Saudi Arabia)
The company will undertake the EPC contract for the utilities and cogeneration package at Saudi Aramco’s Karan gas development project.
This contract includes 47 km of sales gas pipelines. In addition, Petrofac will also upgrade the plant’s process controls, electrical systems and support facilities.