Berantai RSC - agreement with PETRONAS

RNS Number : 7740D

Petrofac Limited

11 July 2016

 

Press Release

11 July 2016

PRESS RELEASE

BERANTAI RSC - AGREEMENT WITH PETRONAS

Petrofac today announces that Petrofac Energy Developments Sdn Bhd and its partners, Kencana Energy Sdn Bhd and Sapura Energy Ventures Sdn Bhd, have reached mutual agreement with PETRONAS for the cessation of the Berantai Risk Service Contract (RSC). 

With the cessation of the RSC, which will be effective on 30 September 2016, PETRONAS will reimburse the balance of outstanding capital and operational expenditures to Petrofac⁽¹⁾⁽³⁾ and its partners over the period to June 2017. As part of the arrangement the ownership of the Berantai FPSO will be transferred to PETRONAS⁽²⁾⁽³⁾.

The Berantai RSC was the first RSC awarded by PETRONAS to Petrofac Energy Developments Sdn Bhd and its two local partners on 31 January 2011. Since then it has co-invested in the development of the Berantai field and been responsible for its operation and maintenance.  Petrofac will use the cash proceeds for general corporate purposes.

Notes

(1)   As disclosed in note 16 of Petrofac's 2015 Annual Report and Accounts (page 148), the receivable due under the Berantai RSC was US$357 million as at 31 December 2015. The gross assets as at 31 December 2015 were US$536 million which includes Petrofac's and First Reserve's proportion of the FPSO. Profits attributable to the field during the year ending 31 December 2015 were US$1 million. As part of the original agreement, PETRONAS could elect to end the RSC early, ahead of the scheduled end date of 2020, depending upon the economics of the project.

(2)   The Berantai FPSO is owned by Berantai Floating Production Limited in which Petrofac has an indirect interest through PetroFirst Infrastructure Limited.

(3)   As a result of the cessation of the RSC and the FPSO transaction, Petrofac will incur a small impairment charge

Ends

For further information contact:

Petrofac Limited      

[phone]

Jonathan Low, Head of Investor Relations

[e-mail]

Jonathan Edwards, Investor Relations Officer

[e-mail] 

Alison Flynn, Group Head of Communications

[e-mail] 

[phone]

Tulchan Communications Group

[phone]

[e-mail]

Stephen Malthouse

Martin Robinson

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation which came into effect on 3 July 2016.

NOTES TO EDITORS

Petrofac

Petrofac is a leading international service provider to the oil and gas production and processing industry, with a diverse client portfolio including many of the world's leading integrated, independent and national oil and gas companies. Petrofac is quoted on the London Stock Exchange (symbol: PFC).

Petrofac designs and builds oil and gas facilities; operates, maintains and manages facilities and trains personnel; enhances production; and, where it can leverage its service capability, develops and co-invests in upstream and infrastructure projects. Petrofac's range of services meets its clients' needs across the full life cycle of oil and gas assets.

With around 19,000 employees, Petrofac operates out of seven strategically located operational centres, in Aberdeen, Sharjah, Abu Dhabi, Woking, Chennai, Mumbai and Kuala Lumpur and has a further 24 offices worldwide.

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

 

END

 

 

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