Petrofac Regulatory News (PFC)

7 Nov 2005 08:30

Petrofac Limited07 November 2005 7 NOVEMBER 2005 PETROFAC LIMITED ("Petrofac") PETROFAC SECURES MAJOR EPC CONTRACT WITH PETROLEUM DEVELOPMENT OMAN Petrofac, the international oil and gas facilities service provider, hasreceived a letter of award for the EPC contract with Petroleum Development Oman(PDO) to build the second phase of the Harweel Cluster Development in southernOman. The project will be executed in conjunction with Galfar a leading OmaniEngineering & Construction Company. This contract, valued at just under 1 billion dollars, will be executed overthree years through Petrofac's Engineering & Construction division from its basein Sharjah, UAE. Petrofac is tasked with the project management, detailedengineering, procurement, construction, pre-commissioning, training and supportduring commissioning of the project and this phase of the project includes a newoil and gas processing station within the Harweel cluster with a gas enrichment/sweetening plant, and associated facilities for a capacity of 10,000 m3 per day(m3/d) of oil production. Additionally, there are facilities for 5 million m3/dgas injection into the Zalzala oilfield, additional gathering facilities,facilities for gas depletion at the Rabab field, and modifications to theexisting Harweel processing station. The first phase of the Harweel development was completed in the first quarter of2004 and has already enabled the early production of some 2,000 m3/d of oil. Theoverall development programme is set to significantly increase Oman's oilproduction over the next ten years. The contract award also provides PDO with an option for an additional 10 millionm3/d gas injection into the Sakhiya oilfield, additional gathering facilities,expansion of the depletion facilities at Rabab, and expansion of the Harweelprocessing station to increase overall capacity to 20,000 oil m3/d. If thisoption is exercised, the total contract value would increase. Commenting on the award, Maroun Semaan, Chief Executive, Petrofac Engineering &Construction, said: "Following the award of the Kauther gas plant project earlier in 2005, thismajor contract will significantly expand our presence in Oman and relationshipwith PDO and takes our E&C backlog to record levels. It follows several monthsof basic engineering work and technical evaluation to come up with the optimumdesign solution. We are also pleased to have had this success alongside our longterm Omani construction partner, Galfar Engineering & Construction." John Malcolm, PDO's Managing Director, said: "The Harweel development is PDO's first full-scale enhanced oil recovery (EOR)project. As such, it sets the trend for the company: EOR will give a new leaseof life to our existing fields, both new and old. Together with our recentlyconstructed gas plants, it represents the future growth areas of PDO. The awardof both the Harweel and the Kauther contracts to Petrofac this year reflects ourconfidence in Petrofac's ability to ensure we achieve our plan." Ayman Asfari, Group Chief Executive, Petrofac Limited, added: "We are delighted to have been awarded this major contract which builds uponPetrofac's relationships with the region's national oil companies anddemonstrates our ability to leverage our strong regional presence. This will bethe largest lump-sum contract undertaken by our E&C business and furtherdemonstrates our clients' confidence in Petrofac's ability to deliverlarge-scale EPC projects." For further information, please contact: Petrofac Limited +44 (0) 20 7471 3500Ayman Asfari, Group Chief ExecutiveKeith Roberts, Chief Financial OfficerRobin Caiger, Head of Investor Relations Bell Pottinger Corporate & Financial +44 (0) 20 7861 3232Ann-Marie WilkinsonGeoff Callow Notes to Editors Petrofac is a leading international provider of facilities solutions to the oiland gas production and processing industry, with a diverse client portfolioincluding many of the world's leading integrated, independent and national oiland gas companies. Through its three divisions, Engineering & Construction (E&C), OperationsServices (OS) and Resources, Petrofac designs and builds oil and gas facilities;operates, maintains or manages facilities and trains personnel; and, wherereturn criteria are met and service revenue synergies identified, co-investswith clients and partners. Petrofac's range of services allows it to help meetits clients' needs across the life cycle of oil and gas assets. Petrofac operates out of four strategically placed international centres inAberdeen, Scotland; Sharjah, UAE; Mumbai, India; and Woking, England, and has afurther 13 offices worldwide, with approximately 5,500 employees. Petrofac's business is focused on the UK Continental Shelf (UKCS), the MiddleEast, North Africa and the Former Soviet Union (FSU). Through both organicgrowth and strategic acquisition, Petrofac's engineering, procurement andconstruction activities have been complemented with development planning andearly stage engineering services, facilities management and training servicesand co-investment. For additional information, please refer to the Petrofac website atwww.petrofac.com. This information is provided by RNS The company news service from the London Stock Exchange