Petrofac Regulatory News (PFC)

11 Aug 2008 07:00



PETROFAC LIMITED

PETROFAC COMMENCES PRODUCTION FROM CHERGUI

Petrofac, the international oil & gas facilities service provider, is pleased to announce that commercial production of gas and condensate has begun from the Chergui field located on Kerkennah Island in Tunisia.  Petrofac Energy Developments is the operator and has a 45% interest in the field whilst its development partner, Entreprise Tunisienne D'Activitiés Pétrolières (ETAP), the Tunisian state oil company, holds the remaining 55%. 

First commercial gas began flowing on 8 August 2008 and it is to be sold to Société Tunisienne de L'Electricité et du Gaz (STEG), the Tunisian state gas and electricity company under the existing gas pricing formula.  The total cost of the development is approximately US$100 million. 

The Chergui field central production facility will initially handle 20 million standard cubic feet per day. A 57km pipeline to shore will tie in to STEG's facilities at Ain Turkia near Sfax on its main pipeline to Tunis. Production plateau rates of 20mmscfd are expected for at least four years. Initial flow will be from two wells. Future potential gas development opportunities may extend the production plateau and the ultimate life of the field. 

Bill Dunnett, executive vice president, project development commented: "Commencement of production is a major achievement following many months of hard work and dedication and I would like to thank the team for all their efforts."

Amjad Bseisu, chief executive of Petrofac Energy Developments added: "Production start-up from Chergui establishes another core area for Petrofac Energy Developments and consolidates our relationship with ETAP. We look forward to future co-operation with ETAP on projects in Tunisia."

Ends

For further information 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

Notes to Editors:

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 return criteria are met and service revenue synergies identified, 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.