Petrofac shares gush higher on $2bn contract award

Shares in Petrofac gushed higher on Friday after the company said it will be awarded a $2bn contract as part of a 50/50 joint venture with Samsung Engineering by Duqm Refinery and Petrochemical Industries in the southern part of Oman.

Petrofac and Samsung's scope of work on the 47-month contract includes engineering, procurement, construction, commissioning, training and start-up operations for all the utilities and offsites at Duqm.

The development, which is a strategic investment for the Sultanate of Oman and forms the cornerstone of the Duqm Special Economic Zone, occupies more than 2,000 acres and, when completed, will have a refining capacity of approximately 230,000 barrels of oil per day.

E Sathyanarayanan, group managing director of Engineering & Construction, said: "This significant project represents our twelfth in the country and serves to reinforce Petrofac's commitment to one of our core markets; one in which we have been present since 1988. Furthermore, it provides a valuable opportunity for us to continue to increase in-country value through engaging with the local supply chain and recruitment of local resources."

At 1250 BST, shares in Petrofac - which is currently being investigated by the Serious Fraud Office - were up 8% to 479.60p.