Petrofac Regulatory News (PFC)

1 Aug 2008 07:00

1 August 2008 

PETROFAC LIMITED

PETROFAC SECURES FURTHER GAS PLANT PROJECT IN EGYPT

Petrofac, the international oil & gas facilities service provider, has secured a further award from Khalda Petroleum Company (KPC). The contract, to provide engineering and procurement (EP) services for an additional gas train should convert to a lump-sum engineering, procurement and construction (EPC) contract on a pre-agreed basis. This will be KPC's fifth gas processing facility (SGT5) to be built at Salam in the Western Desert area of Egypt and adjacent to the ongoing third and fourth Salam gas train facilities (SGT3 & SGT4) which are already being executed by Petrofac.

The award will include Front End Engineering and Design (FEED), EP services and procurement of long lead items. It is anticipated that this will be converted into a full lump-sum EPC contract within the next two to four months. The initial award will facilitate fast-track execution of SGT5 by making best use of Petrofac's current mobilisation in the region and as a result the new train is expected to come on stream towards the end of 2010.

Commenting on the award, Maroun Semaan, chief executive, Engineering & Construction said: "We are delighted to have been awarded this contract. As with many of our FEED and EP contracts we anticipate being mandated to undertake a later construction project. Such contracts enable customers to access Petrofac's expertise before commissioning major work and demonstrate our ability to service energy facilities throughout their life cycle."

Commenting on the award for KPC, Warren Ford, General Manager & Managing Director said: "KPC is very pleased to award the fifth Salam gas processing train to Petrofac. The addition of SGT5 will bring KPC's total gas processing capacity in the Western Desert to 810 million cubic feet (MMcf) of gas and 31,000 barrels of condensate per day, including access to gas processing at Shell's Obaiyed plant.

Gas production from SGT5 before the end of 2010 is made possible through utilisation of Petrofac's EP experience from SGT3 & SGT4, the significant construction resource mobilisation in place, and full application of the lessons learned in SGT3 and SGT4 construction."

With SGT3, SGT4 & SGT5 Petrofac are now involved with the addition of some 300 MMcf of gas processing capacity per day for KPC and the KPC shareholders, Apache Corporation and the Egyptian General Petroleum Corporation.

Ends

For further information, please contact:

Petrofac Limited +44 (0) 20 7811 4900

Ayman Asfari, Group Chief Executive

Keith Roberts, Chief Financial Officer

Jonathan Low, Head of Investor Relations

Bell Pottinger Corporate & Financial +44 (0) 20 7861 3232

Charles Cook

Olly Scott

Petrofac

Petrofac is a leading international provider of facilities solutions to the oil & gas production and processing industry, with a diverse customer portfolio including many of the world's leading integrated, independent and national oil & gas companies. Petrofac is quoted on the London Stock Exchange (symbol: PFC) and is a constituent of the FTSE 100 Index. 

Through its three divisions, Engineering & Construction, Operations Services and Energy Developments, Petrofac designs and builds oil & gas facilities; operates, maintains or manages facilities and trains personnel; and, where it can leverage its service capability, develops and co-invests with customers and partners. Petrofac's range of services allows it to help meet its customers' needs across the life cycle of oil & gas assets.

With more than 10,000 employees, Petrofac operates out of four strategically located international centres, in Aberdeen, Sharjah, Woking and Mumbai and a further 20 offices worldwide. The predominant focus of Petrofac's business is on the UK Continental Shelf (UKCS), Africa, the Middle East, the Commonwealth of Independent States (CIS) and the Asia Pacific region.

For additional information, please refer to the Petrofac website at www.petrofac.com .

Khalda Petroleum Company (KPC)

KPC is a joint venture company between Apache Corporation and Egyptian General Petroleum Corporation (EGPC). KPC is adding the fifth gas processing train (SGT5) to its existing gas facilities to process the gas produced from its recent discoveries. SGT5, a gas conditioning train with a capacity of 100 million standard cubic feed per day, will have gas separation, mercury removal, gas dehydration, tri-ethylene glycol regeneration, gas dew-pointing, CO2 removal, gas export compression, condensate stabilisation, condensate storage and export, recycle gas compression, flare, hot oil and power generation/distribution systems and all associated utilities.