Petrofac awarded 500m-dollar offshore project in Abu Dhabi

FTSE 100-listed Petrofac has been awarded an engineering, procurement, installation and commissioning contract by Abu Dhabi Marine Operating Company (ADMA-OPCO) for the Satah Al Razboot (SARB) Package Three Project in offshore Abu Dhabi.

The group reported that the $500m competitively tendered contract would commence shortly and be delivered by April 2016.

Petrofac, which designs, builds and operates oil and gas facilities, described the SARB Project as a high priority and new field development off the northwest coast of Abu Dhabi.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

The group said that drilling would be conducted from two artificial islands -SARB1 and SARB2- with the well fluid sent by subsea pipeline to a facility on Zirku Island for processing, storage and export.

Under the terms of the contract Petrofac will deliver 200km of subsea pipelines for well fluid, water injection, gas injection, flare and export, along with 3km of onshore pipeline and 55km of subsea power and communication cables.

Yves Inbona, Managing Director of Petrofac's Offshore Capital Projects business, commented: "We are delighted to have been chosen to deliver this important project as part of the high priority SARB development.

"This award is further confirmation of the increased demand we see for Petrofac to broaden its market leading EPC capability offshore, and we look forward to cooperating with ADMA-OPCO and meeting its fast track requirements on this highly significant development."

Petrofac's share price was up 0.49% at 1,440p at 11:31 on Tuesday.

MF