Petrofac awarded $130m scope of work in Oman

Petrofac announced a new contract and the award of an additional scope of work with Petroleum Development Oman (PDO) on Tuesday, with a combined value of around $130m.

The FTSE 250 company said the new contract award, under a 10-year framework agreement signed in 2017 with PDO, is an engineering, procurement and construction management (EPCM) services contract for the Mabrouk North East Development Project in Oman.

It said the full field development of the Mabrouk North East field was planned to be executed in a phased approach.

The 34-month project scope awarded would involve the development of 16 gas producing wells and export of the production to the Saih Rawl Central Processing Plant.

Petrofac said the project would be integrated with the Mabrouk North East Line Pipe Procurement Project, which was awarded to Petrofac in June.

The other scope of work awarded was to provide further services for PDO's Yibal Khuff Project, with the board saying the 20-month contract included detailed engineering, procurement, and support for the construction and commissioning of nine additional wells to improve overall plant production, and the laying of gas pipeline from Yibal ‘A’ to the main processing facility.

It explained that the Yibal Khuff Project, originally awarded to Petrofac in June 2015, was already in an advanced phase of construction and pre-commissioning, with the delivery of additional wells is to be synchronised for overall readiness.

“This latest project award under the long-term framework agreement with PDO for Mabrouk North East, and additional scope of work for the Yibal Khuff Project, both further underpin our significant track record and commitment to delivering value in Oman,” said Elie Lahoud, group managing director of engineering and construction.

“Our focus will remain on safe operations and maximising in-country value through the continued development of local workforce competence and strong supply chain partnerships.”

At 1028 GMT, shares in Petrofac were up 0.26% at 385.5p.