The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
PFC looks to be evenly placed to win at least one package on the huge Dalma Sour Gas project although the Chinese are apparently lowest on the onshore package, according to the latest edition of Upstream magazine.
1) Petrofac+GS joint venture understood to be low bidder out of 7 participating entities for estimated US$2.5 billion Hassi Messaoud refinery in Algeria
2) Award expected shortly on the Iraq Common Seawater Cooling project. Estimated cost US$5billion. Petrofac, Hyundai and Biwater are the bidders.
3) Petrofac among others submitted commercial bids on 3/4/19 for ADNOC's estimated US$3 billion Gasoline & Aromatics (GAP) project
4) Petrofac among others submitted Technical bids for ADNOC's estimated US$1.5billion Dalma Sour gas project
This is the Iraq Majnoon contract I was referring to in my post dated 23rd June! It has been publicly announced only today however after the formal signing.
MEED reports that PFC is one of 5 bidders who have just submitted commercial bids for the estimated US$1.5 billion But Hasa project of ADNOC in Abu Dhabi.
MEED has reported that bids have been submitted for the Iraq CSSP but have not mentioned any possible contract award date. PFC is among the 3 shortlisted companies for the water treatment plant. Elsewhere, in Thailand the estimated $4.8 billion refinery project expansion that the Petrofac CEO confirmed they were bidding for has reached FID hence a contract award is likely to be made during this quarter. PFC is probably bidding in consortium with one or two other bidders. On the IGD2 project in Abu Dhabi, estimated US$1 billion, PFC has bid in joint venture with NPCC and MEED has reported that the joint venture has received highest points for ICV (in-country value) although commercially Tecnicas Reunidas from Spain is the lowest bidder. PFC has also bid for the Ain Tsila gas plant and Hessi Masood refinery projects, both estimated at US$2 billion each.
MEED reported that Petrofac & Hyundai, South Korea have submitted their bids for Phase 1 of CSSP in Iraq. Contrary to earlier reports, the third bidder has been named as Biwater from the U.K. instead of Bauer Group, Germany. Biwater incidentally had announced a partnership with Wood in March '18 for projects coming out of Iraq.
PFC among 3 shortlisted firms alongside Bauer Group (Germany) and Hyundai E&C (Korea) by Basra Oil Company in Iraq for massive US$5 billion CSSP (Common Seawater Supply Project) on 26th June as per MEED exclusive news. Initial list contained 7 bidders.
The $400million contract is indeed a new one awarded to Petrofac by Basra Oil Co. during mid June 2018. It is for the new Central Processing Facilities 2 (CPF2) train designed to take production from South Majnoon field to 400000BPD by 2021. For whatever reason, both BOC and PFC have not made a public announcement yet of the signing. However it is quoted in the latest Upstream Weekly edition which is a paid subscription. The deal signed between Anton/PFC and Basra Oil Co. in April 2018 as reported by Reuters and others is a different contract for the 2 year operations of the Majnoon Field following Anglo-Dutch Shell relinquishing their stake. Value of that contract incidentally hasn't been made public!! Expect PFC to post RNS regarding the $400 million new award shortly. While on the subject of contract awards, it may also be noted that although Petrofac was the front-runner for the estimated US$450 million BuHaseer offshore contract in Abu Dhabi, they have ultimately lost out to NPCC. (as also reported in Upstream Weekly)
My personal opinion is that possible bidders for PFC could also be from Abu Dhabi namely Mubadala or Senaat. Sometime back along with Halliburton & Schlumberger an unnamed Abu Dhabi bidder was mentioned in the press. Also interesting that on the current ADNOC LNG expansion project, PFC is bidding jointly with NPCC which is also owned by Senaat.
Anton, Petrofac sign deal to operate Iraq's Majnoon oilfield https://www.reuters.com/article/iraq-oil/update-1-anton-petrofac-sign-deal-to-operate-iraqs-majnoon-oilfield-executives-idUSL5N1RI2YQ