Abu Dhabi, UAEWednesday 22 January 2020

Petrofac wins $130m of work with Petroleum Development Oman

The oil services firm will undertake full-field development of the Mabrouk North East field over a period of 34 months

Petrofac, which has offices in Sharjah, swung to profit in the first half of 2019 on the back of strong revenue and lower finance expenses. Petrofac via Bloomberg News
Petrofac, which has offices in Sharjah, swung to profit in the first half of 2019 on the back of strong revenue and lower finance expenses. Petrofac via Bloomberg News

Oil services firm Petrofac won contracts worth $130 million (Dh477m) from Petroleum Development Oman for two upstream projects in the sultanate.

The company, which is headquartered in Jersey and trades on the London Stock Exchange, will undertake full field development of the Mabrouk North East field, drilling 16 gas production wells and facilities to export gas to the Saih Rawl central processing plant over 34 months.

The scheme will eventually be integrated with the Mabrouk North East line pipe procurement project, which was also awarded to Petrofac in June.

The company also won a 20-month engineering, procurement, construction and commissioning contract to drill nine additional wells, develop pipeline infrastructure and improve plant production for the Yibal Khuff project.

Petrofac was awarded the Yibal Khuff scheme in 2015, with the project currently at "an advanced phase of construction and pre-commissioning", the company said.

"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 for engineering and construction at Petrofac.

Petrofac, which has offices in Sharjah and Abu Dhabi, swung to profit in the first half of 2019 on the back of strong revenue and lower finance expenses.

Net profit attributable to shareholders for the six-month period ending June 30 reached $139m, compared to a loss of $17m for the same period last year. Revenue increased 1 per cent in the first half to $2.82 billion from the same period a year earlier, while finance expenses were lower at $30m.

Revenue is expected to decrease in 2020 due to a low order intake than in recent years, it said. Group capital expenditure is expected to be around $125m in 2019, up from $98m in 2018.

Updated: December 31, 2019 06:56 PM

SHARE

SHARE