PETROFAC AWARDED CONTRACT FOR KHAZZAN

RNS Number : 1290Z

Petrofac Limited

12 December 2017

 

Press Release

12 December 2017

PETROFAC AWARDED CONTRACT FOR KHAZZAN

PHASE 2 IN OMAN

Petrofac has been awarded a lump-sum contract worth approximately US$800 million by BP for the Phase 2 central processing facility (CPF) at the Khazzan Phase 2 (Ghazeer) gas development in the Sultanate of Oman.  This follows the US$ 1.4 billion Phase 1 CPF Khazzan project, awarded to Petrofac in February 2014, which celebrated first gas on 22 September this year. 

The project comprises the addition of a third gas train with a capacity for nominally handling 500 million standard cubic feet of gas per day (mmscfd), which will help drive increased total production capacity from the CPF to 1,500 mmscfd.  The Engineering, Procurement, Construction and Commissioning (EPCC) scope of work also includes liquid and compression trains and associated infrastructure, as well as brownfield work associated with connecting the Phase 1 and 2 facilities. 

Ayman Asfari, Petrofac Group Chief Executive commented: "Petrofac has executed a large number of projects for BP across many aspects of our business and we are delighted to be supporting them on the next phase of this pioneering project in Oman.  We have a very strong record for project execution in Oman and as part of this have delivered significant in-country value.  We look forward to continuing to demonstrate our commitment to a sustainable and long-term presence in the Sultanate through the safe and timely delivery of this project for BP."

Bernard Looney, Chief Executive Upstream at BP, said: "The successful start of production from Khazzan Phase 1 was a major milestone for BP in 2017. We are now building on this, deepening our partnership with the Sultanate of Oman, as we work towards development of the second phase and this award to Petrofac will continue the relationship that delivered Phase 1."

Elie Lahoud, Petrofac Senior Vice President, Operations said: "We are proud to have been part of the Khazzan journey since the outset of Phase 1.  This new award comes shortly after the start of production from the Phase 1 CPF facilities in September. That achievement provides us with a proven delivery model that, coupled with the knowledge gained from the earlier project and the strong support from our contractors, positions us well to deliver a great project for BP and Oman."

BP Oman is lead partner in the Khazzan project with a 60% interest. Oman Oil Company Exploration & Production holds 40%.

Ends

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

For further information contact:

Petrofac Limited      

[phone]

Jonathan Low, Head of Investor Relations

[e-mail]

Alison Flynn, Group Head of Communications

[e-mail] 

[phone]

Tulchan Communications Group

[phone]

[e-mail]

Martin Robinson

LEI 2138004624W8CKCSJ177

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 13,000 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.

 

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