Petrofac Wins North Sea Contracts

- Petrofac Wins North Sea Contracts

Tuesday, August 30, 2011
GDF SUEZ

GDF SUEZ E&P UK Ltd has awarded two significant contracts to Petrofac Offshore Engineering & Operations (OE&O), which will create an estimated 100 new jobs in the North Sea over the next five years.

The integrated services contract (ISC) and engineering services contract (ESC), which start in August 2011, have a combined value of £30 million over three years, with a two year option. The work scope includes the provision of operations, maintenance, engineering and general support services to assist GDF SUEZ E&P UK as it becomes a UKCS (UK Continental Shelf) duty holder for its operated projects, which include notably Cygnus in the Southern North Sea.

Jean-Claude Perdigues, managing director at GDF SUEZ E&P UK, said: "These two new contracts represent a significant milestone for GDF SUEZ E&P UK and will help the company to conduct its North Sea operations safely, efficiently and cost effectively. I look forward to a long and productive relationship with Petrofac OE&O as we work together to generate production and employment in the UKCS."

About GDF SUEZ E&P UK Ltd

GDF SUEZ E&P UK Ltd is involved in the exploration for and production of oil and gas in the Southern and Central North Sea and West of Shetland area. In total, the company employs around 100 staff at the London office and the operations centre in Aberdeen. In the UK, GDF SUEZ E&P holds around 50 exploration licences (19 as an operator) and 16 producing fields located in the UK North Sea. With the ongoing Cygnus and Juliet development projects the proportion of operated production will rise to 50% by 2013. A total of 10 million boe per year is produced by GDF SUEZ E&P UK.

Cygnus is one of the most significant undeveloped gas fields in the United Kingdom Continental Shelf. Analysis of the results from the discovery well and six appraisal wells, together with 3-D seismic evaluations, has led to a preliminary ultimate recovery estimate of at least 15 billion m3 of natural gas and potentially up to 28 billion m3.The development plan is for a four platform complex with two drilling centres and up to 10 wells. Final negotiations are underway on the export route. Project sanction is expected for Q1 2012.

About GDF SUEZ

GDF SUEZ develops its businesses around a model based on responsible growth to take up today's major energy and environmental challenges: meeting energy needs, ensuring the security of supply, fighting against climate change and maximizing the use of resources.

The Group provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation as well as unique expertise in four key sectors: liquefied natural gas, energy efficiency services, independent power production and environmental services.

GDF SUEZ employs 218,350 people worldwide and achieved revenues of €84.5 billion in 2010.

The Group is listed on the Brussels, Luxembourg and Paris stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Stoxx 50, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, ASPI Eurozone and ECPI Ethical Index EMU.

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Petrofac Touts $2.71B in Revenue, Up 25%

- Petrofac Touts $2.71B in Revenue, Up 25%

Monday, August 22, 2011
Petrofac Ltd.

Petrofac announced its interim results for the six months ended June 30, 2011.

FINANCIAL HIGHLIGHTS

• Revenue up 25.2% to US $2,711.1 million (2010 restated: US $2,165.8 million)
• Net profit up 6.6% to US $246.3 million (2010 restated: US $231.0 million)
• Earnings per share (diluted) up 6.7% to 71.84 cents (2010 restated: 67.31 cents)
• Interim dividend up 26.1% to 17.40 cents (10.54 pence) per share (2010: 13.80 cents)
• Backlog US $11.4 billion at 30 June 2011 (December 31, 2010: US $11.7 billion; 30 June 2010: US $6.9 billion)
• Gross cash balances at 30 June 2011 of US $1.8 billion (December 31, 2010: US $1.1 billion)

Ayman Asfari, Petrofac's group chief executive commented on the interim results:

"We have had a successful year to date, with good operational performance across our portfolio of projects and encouraging progress against our recently announced Integrated Energy Services strategy. We are well on course to deliver like-for-like net profit growth in 2011 of at least 15% and in-line with current market expectations.

"With a strong financial position, a differentiated and competitive offering and a proven track record in project execution, we remain confident of achieving our medium-term growth target of more than doubling our recurring 2010 earnings by 2015."

OPERATIONAL HIGHLIGHTS

Engineering & Construction

• Order intake in the year to date of US $1.6 billion with new awards in Algeria, Iraq and Malaysia
• Good progress on South Yoloten development, in Turkmenistan: substantially completed construction of temporary facilities and placed the majority of orders for procurement items
• Completed the Jihar gas plant in Syria and the In Salah Gas compression facilities and power generation in Algeria Offshore Engineering & Operations
• Secured a number of new contracts and extensions, including a contract to provide maintenance services on the Rumaila oilfield in Iraq for BP
• Record activity, including on the SEPAT development and upgrade of the FPSO Berantai (formerly the East Fortune) in Malaysia (both being undertaken jointly with E&C)

Engineering, Training Services and Production Solutions

• Opened a third Indian office, in Delhi, to support growth in activity levels across the group
• Entered into an MOU for a technical training partnership with PETRONAS to develop competency-based training for operations and maintenance personnel in Malaysia
• Good progress on Ticleni in Romania, improving production through optimising pump settings, working over wells and bringing back on-stream the first five of many shut-in wells
• Agreed to invest up to a further US $75 million in Seven Energy taking our interest up to 24.5%
• Selected bidder on Magallanes and Santuario Production Enhancement Contracts in Mexico

Energy Developments

• Secured first Risk Service Contract (RSC) in Malaysia, for development of the Berantai field
• Acquired FPF3 (formerly the Jasmine Venture), deployed on the Jasmine field in the Gulf of Thailand and leased to Pearl Energy, a subsidiary of Mubadala, and now operated by Offshore Engineering & Operations
• Pre-invested in field infrastructure in readiness for future developments, including the acquisition of FPF4 (formerly the Cossack Pioneer)
• Cendor phase 2 in Block PM304, offshore Malaysia, progressing to schedule and entered into an MOU with PETRONAS to accelerate the third phase of Block PM304, West Desaru

OUTLOOK

We are confident that we can continue the good progress that we have achieved in Engineering & Construction in the year to date. With high levels of backlog, we have outstanding revenue visibility which should ensure that we report strong growth in our full year revenues and we expect full year net margins to be in line with our medium-term guidance at around 11%.

While Offshore Engineering & Operations activity levels and revenues are expected to continue at record levels, net profit is expected to be lower in the second half of the year, as the first half benefited from significant progress on the SEPAT development and a provision release following completion of a long-term maintenance services contract. Net margins for the full year are expected to be substantially higher than in the prior year.

The second half performance of the Engineering, Training Services and Production Solutions reporting segment is expected to be broadly in line with the first half of the year, albeit with a greater contribution from Production Solutions, as we expect a general improvement in our consultancy and technology businesses and a positive contribution from the Ticleni Production Enhancement Contract.

In Energy Developments, our operational assets are expected to continue to perform broadly in line with the first half, with the exception of the Ohanet RSC, which ends, as expected, in October. On the Berantai field development, we expect the FPSO Berantai to mobilize to the field in early 2012, with first gas from the field expected shortly thereafter.

With a strong financial position, a differentiated and competitive offering and a proven track record in project execution, we are confident that we will continue to deliver superior value for our customers and sector-leading returns for our shareholders.

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Petrofac, Petronas Sign MOUs, Strengthen Relationship

- Petrofac, Petronas Sign MOUs, Strengthen Relationship

Wednesday, July 13, 2011
Petrofac Ltd.

Petrofac has signed two memoranda of understanding (MOU) with Petroliam Nasional Berhad (PETRONAS).

The first MOU records the undertaking by Petrofac and PETRONAS to accelerate production from Block PM304, offshore Peninsular Malaysia, with a third phase of development. Petrofac owns a 30% equity share and is the Operator of PM304, which includes the Cendor and West Desaru fault blocks. Petrofac intends to accelerate the development of the West Desaru fault block by introducing an Early Production System which will involve both utilising current export facilities and also upgrading and deploying a Mobile Offshore Production Unit which is in the process of being purchased. This approach is expected to bring forward first oil production from West Desaru into the fourth quarter of 2012. The second phase development of the Cendor fault block, also in Block PM304, is expected to start up in the second quarter of 2013, bringing the overall production capacity of Block PM304 to around 60,000 barrels per day.

The second MOU outlines the intention between Petrofac and PETRONAS to collaborate in the area of competency development, capability building and education activities. This will involve a technical training partnership between Petrofac Training Services and Institut Teknologi Petroleum PETRONAS (INSTEP) to develop competency-based training for operations and maintenance personnel, as well as lecture and seminar programs with the Universiti Teknologi Petroleum (UTP).

Ayman Asfari, Petrofac Group Chief Executive, commented, "We have been working with PETRONAS since 2004, when we began the development of PM304 with the Cendor fault block. This is a relationship we value highly and which continues to deepen. We have today entered into two arrangements that will accelerate the development of PM304 and support PETRONAS in their continuous efforts in enhancing Malaysian capability in the oil & gas sector. In combination, we are providing a solution which addresses important strategic targets for PETRONAS and serves to underpin the strength of our Integrated Energy Services offering."

Dato' Shamsul Azhar Abbas, PETRONAS' President and Chief Executive said, "From the early stages of their entry into Malaysia's oil & gas upstream development PETRONAS has viewed Petrofac as one of its strategic partners. This view is reflected by the MOUs we have exchanged today. Going forward, PETRONAS will be able to access and benefit from a broader range of capabilities from across the Petrofac group, building on our existing partnership. We look forward to our continued collaboration with them."

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Petrofac Secures Marathon Contract Renewal

- Petrofac Secures Marathon Contract Renewal

Tuesday, July 12, 2011
Petrofac Ltd.

Petrofac announced that its Offshore Engineering & Operations (OE&O) business has been awarded a contract renewal by Marathon. Petrofac has been working with Marathon on its North Sea Brae assets since 2005. Following the delivery of a number of critical projects, the contract has been extended by a further four years.

Starting in August 2011, Petrofac will deploy its engineering, construction, operations and maintenance services under the terms of the new contract. The base scope is valued at £36 million, although this does not include the value of any future projects which may get sanctioned.

Bill Dunnett, managing director, Petrofac OE&O commented, "The renewal of this important contract with Marathon is recognition of the strength of the working relationship our respective teams have developed in the past six years. As a group we are committed to the North Sea and this long-term contract extension, which enables us to continue to deploy our extensive services capability, is key to our continued growth and development in the region."

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Petrofac Elects Not to Acquire Tassie Shoal Stake

- Petrofac Elects Not to Acquire Tassie Shoal Stake

Friday, July 01, 2011
MEO Australia Ltd.

MEO advised that Petrofac Energy Developments has elected not to exercise its option to acquire 5% interest in NT/P68 & Tassie Shoal Projects.

The option, which expired on June 30, 2011, was granted to Petrofac in October 2009. At this time Petrofac agreed to withdraw from the NT/P68 Permit and terminate the partially fulfilled farm-in agreement.

As a result of Petrofac's election, MEO has retained its undiluted interest in NT/P68 for which binding agreements were executed with Eni Australia Ltd (Eni) on May 17, 2011.

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Statoil, Partners Sign $1.5B EPC Contract with Petrofac

Statoil, Partners Sign $1.5B EPC Contract with Petrofac

Tuesday, April 12, 2011
Statoil

Statoil, BP and Sonatrach have signed a USD 1.15 billion engineering, procurement and construction (EPC) contract with Petrofac International (UAE) LLC in Algiers for the execution of the In Salah Southern Fields development project.

The EPC contract is part of the phase two development of the In Salah license. For Development and Production International the project marks an important step towards maturing barrels for profitable production.

The three gas fields – Krechba, Teg and Reg – located in the northern part of the license, were initially developed in phase one, with the objective of delivering a production profile of nine billion cubic meters of gas annually. This phase started in late 2001, and first commercial gas was delivered in July 2004.

Based on the expected decline of gas production from these three fields, phase two of the development has now implemented to maintain the production plateau and sustain long-term gas sales commitments. It consists of four gas fields – Garet El Bifna, Gour Mahmoud, In Salah and Hassi Moumene – in the southern part of the license.

Under the EPC contract Petrofac will build a number of facilities – including well pads, manifolds, flowlines, and a new central processing facility (CPF) with a gas processing capacity of 17 million cubic meters per day. The CPF will be constructed north of In Salah town and tied back to the existing producing facilities located in Reg for further transport of the gas to Krechba CPF for carbon dioxide removal and gas export.

In his speech, Victor Sneberg, Statoil's country president in Algeria, stated his expectation to Petrofac to deliver on time, cost and schedule.

First gas from the Southern Fields development project is expected for the first half of 2014. Gas produced from In Salah is marketed by joint marketing company "In Salah Gas Limited" – an association between Sonatrach, BP and Statoil. The three partners in the In Salah license have investment shares of 35% (Sonatrach), 33.15% (BP) and 31.85% (Statoil), respectively.

Petrofac Lands Contract for Shell's Majnoon Field

Petrofac Lands Contract for Shell's Majnoon Field

Thursday, March 31, 2011

Petrofac Ltd.

Petrofac has been awarded a contract, in excess of US $240 million by Shell Iraq Petroleum Development B.V. for developments in the Majnoon Field, Southern Iraq.

Under the competitively tendered contract, Petrofac is providing engineering, procurement, fabrication and construction management services for the development of a new early production system comprising two trains each with capacity for 50,000 barrels of oil per day, along with upgrading of existing brownfield facilities. Work on the project began in mid-2010 and is expected to complete during the fourth quarter of 2012.

Ayman Asfari, Petrofac group chief executive, said, "Majnoon is one of Iraq's largest developments and we are delighted to be working with Shell to assist them with unlocking the field's potential. Iraq's geographic location, adjacent to many of our existing areas of operation, made it a natural market for the group as we continue to broaden our geographic footprint."

Subramanian Sarma, managing director, Petrofac Engineering & Construction added, "Prior to beginning work with Shell in Iraq last year, we had spent many months preparing in order to achieve a sufficient level of readiness across several aspects of our business operations. All of our activities are underpinned by our strong commitment to safety, quality and integrity and alongside Shell and the local community, we are working to deliver this project to the standards our customers and stakeholders expect from us."