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Tuesday, July 26, 2005
PRESS RELEASE—July 25,2005–International oil services company Petrofac has secured a contract with the Sultanate of Oman’s Ministry of Oil & Gas (MOG) to build a new gas plant in the Kauther field in north Oman. The single-train plant will recover valuable gas and condensate reserves. The Kauther field is being developed and operated by Petroleum Development Oman (PDO) on behalf of the MOG.
The three-year contract, valued at more than USD 200 million, will be executed through Petrofac Engineering & Construction from its base in Sharjah. Petrofac is tasked with engineering, procurement and construction (EPC) of the 20 million standard cubic metre facilities over a twenty-four month period and will then operate the plant for an initial
one-year period. The project will draw on capability across the Petrofac group from engineering and construction through to operations services.
Commenting on the award, Maroun Semaan, CEO, Petrofac Engineering & Construction, said, "This award marks Petrofac¹s re-entry into Oman which we consider to be a strategically important market for the group. We are pleased to be working with PDO again and our long term Omani construction partner, Galfar Engineering & Construction".
Vice President of sales & marketing, Peter Warner added, "This is the first time PDO has implemented a Œdesign competition¹ type approach on a bid, whereby the bidders were responsible for undertaking the front-end engineering design within the EPC bidding process. Such design competitions allow bidders to implement their own ideas into, and take ownership of, the front-end design within the constraints of functional
specifications."
PDO has recently completed commissioning a gas plant of a similar size in Saih Nihayda in the Sultanate and this most recent contract is evidence of the growth in Oman’s gas industry. PDO’s gas engineering manager, Abdallah Al Aufi said, "We are pleased to welcome Petrofac back to our family of contractors. We have worked together effectively to execute a novel way of tendering, and I believe Petrofac’s experience and commitment will ensure this project’s success."
This is Petrofac’s first project in Oman since the successful completion of the North Oman Crude Stabilisation Project for PDO in 1994. The new plant at Kauther is important to the country as it will produce a high level of condensate in addition to gas. The conditioned gas is to be exported into the existing Government gas system and the condensate is to be exported from Kauther to the existing Saih Rawl Central Processing
Plant.
The Kauther field is located in the Al Dakhlia region of Oman, 50km south of the town of Adam and was discovered by PDO in 2001.
For further information, contact:
Petrofac Fifth Ring Integrated Corporate
Communications
David Lufkin Kelly Kilner
Director Business Development Business Unit Manager (PR)
Tel: +971 (0) 6 5740999 Tel: +44 (0) 1224 628088
Notes to Editors:
Petrofac is an international business providing total facilities solutions for the oil & gas production and processing industries. Established in 1981, Petrofac¹s four main operating centres are in the UAE (Sharjah), England (Woking), Scotland (Aberdeen) and India (Mumbai). It has a network of international support office and employs approximately 5,000 people throughout the business. Petrofac has three operating divisions: Engineering and Construction, Operations Services and Resources. Engineering and Construction provides project development and integrated engineering, procurement and construction operations in oil & gas gathering, processing and transportation in both Greenfield and Brownfield developments. Utilising some of the latest developments in process engineering technology and equipment, Petrofac provides fast-track engineering, procurement and construction services for facilities and processes – from wellhead to finished refined products. Project values typically range from $50 million to $700 million. Petrofac is involved in projects in various international locations including Kuwait, Georgia, Kazakhstan and Qatar. Operations Services through Petrofac Facilities Management and Petrofac Training provides comprehensive operational support, management, training and consultancy services to the oil and gas producing and refining industries. Already a market leader in the UK Continental Shelf, it is developing an
international business working with both the independent sector and with major national and international oil companies.
Resources delivers investment and financing support to projects in which Petrofac has the opportunity to provide engineering, construction or operations services. Petrofac invests selectively alongside its customers, developing financing solutions which facilitate project viability, manage project risks, and improve alignment of interests. Petrofac’s current investments include projects in Algeria, Malaysia, and the UKCS.
This combination of services enables Petrofac to work with customersthroughout the full asset life cycle to optimise value from concept design through to decommissioning. The global industry is increasingly moving towards further outsourcing and to be able to provide such a diverse range of services on an international scale is unique.
For additional information please refer to the Petrofac website at
www.petrofac.com
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