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Petrofac awarded $1.65bn of work in the Emirates

By Josh White

Date: Tuesday 18 Feb 2020

Petrofac awarded $1.65bn of work in the Emirates

(Sharecast News) - Petrofac announced on Tuesday that Petrofac Emirates has been awarded two contracts, together worth around $1.65bn (1.27bn), with Abu Dhabi National Oil Company (ADNOC) in the United Arab Emirates.

The FTSE 250 company said the engineering, procurement - including novated long lead items - construction, transportation, offshore installation and commissioning contracts were for ADNOC's Dalma Gas Development Project.

It said the work scope encompassed offshore packages at Arzanah island and surrounding offshore fields, located about 140 kilometres off the north-west coast of the Emirate of Abu Dhabi.

The first package, valued at $1.065bn, would be for gas processing facilities at Arzanah island.

Under the terms of the 33-month lump-sum contract, the scope of work includes inlet facilities with gas processing and compression units, power generation units, utilities and other associated infrastructure.

For the second package, valued at $591m, Petrofac would lead a joint venture with SapuraKencana HL Abu Dhabi.

Under the terms of that 30-month lump-sum contract, the scope of work includes three new well-head platforms, removal and replacement of an existing topside, new pipelines, subsea umbilicals, composite and fibre optic cables.

The company said the Dalma project was a "key part" of the Ghasha ultra-sour gas concession, which is central to ADNOC's strategic objective of enabling gas self-sufficiency for the United Arab Emirates.

"Petrofac has a strong track record in the UAE, with a presence here since 1991 and around 3,000 staff in [the] country," said chief operating officer of engineering and construction George Salibi.

"We are fully committed to supporting continued and sustainable investment in Abu Dhabi's oil and gas industry through our strategic focus on maximising local delivery, and are pleased that our approach will generate substantial in-country value for the local economy.

"These latest contract awards build on our existing relationship with ADNOC Group companies and we look forward to delivering this mega project in a safe, successful and sustainable manner."

Petrofac said its operations in the country, established in 1991 with operational centres in Abu Dhabi and Sharjah, had executed 11 major engineering, procurement and construction projects in-country to date.

Recent projects included the Upper Zakum UZ750 project, Qusahwira Field Development Phase II, the Satah Al Razboot (SARB) Package 3, the contract for expansion of compression facilities at the Bab field and development of the Bab Habshan-1 project.

At 1034 GMT, shares in Petrofac were up 1.59% at 370.8p.

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