x Abu Dhabi, UAESaturday 22 July 2017

Petrofac awarded $1.7bn refinery contract in Kuwait

It represents the second major refinery project to be awarded to Petrofac in recent months, the first being the $2.1bn Sohar Refinery improvement project for Oman Oil Refineries and Petroleum Industries Company in Oman.

Petrofac, the London-listed oilfield services provider, has won a US$1.7 billion contract in southern Kuwait to be completed over the next four years.

The contractor, which operates facilities in Abu Dhabi and Sharjah, won the order from Kuwait National Petroleum Company (KNPC). The project forms part of a $3.7bn joint venture with Korea’s Samsung and the Dutch firm CB&I.

“This will be our ninth project in Kuwait and I am delighted we have secured the opportunity to work with KNPC, a new customer for us,” said Subramanian Sarma, the managing director of Petrofac’s onshore engineering and construction business.

It represents the second major refinery project to be awarded to Petrofac in recent months, the first being the $2.1bn Sohar Refinery improvement project for Oman Oil Refineries and Petroleum Industries Company in Oman.

The oil and gas construction company has a subsidiary in Abu Dhabi, Petrofac Emirates, which employs 700 people.

The new contract includes the provision of 19 new refining units at Mina Abdulla, the revamping of five existing units at the Shouaiba refinery site and the accompanying inter-refinery transfer lines.

Petrofac shares gained about 0.6 per cent in midday London trading yesterday.

Petrofac has set itself a target of doubling profit to $862m by next year, despite a subdued performance last year.

ascott@thenational.ae