Petrofac has won a US$900 million contract to provide services for one of Oman’s integrated oil and gas projects.
The UK-listed company, with yards in Abu Dhabi and Sharjah, said it would provide engineering, procurement and construction for Petroleum Development Oman’s Yibal Khuff development project over the next four-and-a-half years. The project, located about 350 kilometres south-west of Muscat, is expected to come online in 2019 and produce crude and sour gas.
The managing director for Petrofac’s engineering and consulting services, Craig Muir, said the company would use the “local supply chain and recruitment of local resources” to deliver the project.
The contract would not dent Petrofac’s backlog, said Alex Brooks, a London-based energy analyst at Canaccord Genuity.
A quarter of the contract is for professional services, with the remainder for pass-through procurement, which represents a significantly lower contract value of about $225m.
“Comparing to the group’s backlog of about $19bn, this [contract] is only about a 1 per cent addition,” Mr Brooks said. “It is not completely irrelevant, but it is a small addition.”
Petrofac shares rose slightly to £9.05 each in early morning trade in London from £8.96 from yesterday’s close.
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