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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely 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
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
-
Should you invest in UK equities?The FTSE 100 hit a record high this week, but UK equities remain unloved and undervalued compared to their global and US peers. Should you snap them up at a discount?
-
State pension errors: DWP urged to check for mistakes among divorced peopleFormer pensions minister Steve Webb says there are a high number of divorced women on low state pensions. Now MPs want the DWP to check if there were any errors in “potentially underpaying men and women who are divorced”.
