Petrofac and Hitachi Energy announce second project in support of TenneT’s 2GW Programme

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Petrofac, alongside with its partner Hitachi Energy has announced the award of a second project under a US$14 billion, multi-year Framework Agreement with TenneT – the Dutch-German Transmission System Operator – to expand offshore wind capacity in the North Sea.

This second contract is for Nederwiek 1, a Dutch transmission station which forms part of TenneT’s landmark 2 Gigawatt (2GW) Programme. The project is to be executed as a standalone project, with Petrofac’s portion of the second contract valued at around US$1.4 billion.

Under the terms of the agreement, we will undertake the engineering, procurement, construction, and installation (EPCI) of offshore platforms and elements of the onshore converter stations while Hitachi Energy, as global technology partner, will supply its HVDC converter stations, which convert AC to DC power offshore and DC to AC onshore.

Close collaboration

Since we announced the framework agreement in January, we have been collaborating closely with Hitachi Energy on preparatory works, reserving production capacity for multiple platforms and HVDC technology and initiating the detailed design process for the first platform awarded under the agreement, Ijmuiden Ver Alpha.


Additional projects within TenneT’s 2GW Programme are expected to be awarded at approximately six-month intervals. These are the grid connections landing at Geertruidenberg or Moerdijk (Nederwiek 3) and Eemshaven (Doordewind 1 and Doordewind 2). The sixth project, the German connection LanWin5, will be connected near Rastede, Germany.

John Pearson, Chief Operating Officer (COO), Energy Transition Projects, Petrofac, said:

“We have been collaborating with our partner Hitachi Energy, and client TenneT, on the first project, Ijmuiden Ver Alpha. The award of Nederwiek 1 continues our focus on the standardisation and harmonisation of design and execution that will be central to the ‘design one, build many’ philosophy of the 2GW Programme. By aligning ourselves with TenneT’s objectives, we are creating a blueprint for the rapid deployment of large-scale infrastructure projects crucial to Europe’s energy transition”.

Niklas Persson, Managing Director of Hitachi Energy’s Grid Integration business said:

“As a pioneering technology and market leader, we are delighted to collaborate to deliver our HVDC solution for Nederwiek 1, combining world-class energy and digital systems. Our strong collaboration with Petrofac, based on an agile business model, scalable solutions and synergies among projects, allows us to join forces and support TenneT in its ambition to accelerate offshore wind deployment in the North Sea, granting European citizens more sustainable and reliable power.”

Source: Petrofac

Shell, EGAS and Petronas award Idku Energy Hub project FEED to Bechtel-led coalition

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Shell Egypt, EGAS and Petronas have awarded a front-end engineering and design (FEED) contract to a Bechtel-led coalition that includes Enppi and Petrojet to study a proposed unified power system between the onshore gas processing plant of the West Delta Deep Marine (WDDM) gas fields in the Mediterranean Sea off the coast of Egypt and the Egyptian LNG export terminal (ELNG) in Idku, east of Alexandria.

The FEED for the Idku Energy Hub project will explore the benefits of a One Power Hub concept, integrating the electrical power systems at the WDDM and ELNG, as opposed to having two separate systems. It seeks to increase the power saving and greenhouse gas abatement benefits of unifying the electrical power systems of the onshore plants. The synergies will include optimization of the number of running gas turbine generators, modelling the most efficient operating mode for both plants, reducing greenhouse gas emissions and economizing the fuel consumption in the entire hub.

This project is part of a wider program between the coalition and the Egyptian Ministry of Petroleum and Mineral Resources aiming to decarbonize existing oil and gas facilities across the country and deliver on its climate change strategy.

“I am so proud that the oil and gas sector is contributing significantly to achieving top strategic goals: accelerating decarbonization and economizing power consumption,” His Excellency Minister of Petroleum and Mineral Resources Eng.Tarek El-Molla said. “I am pleased that our partners are taking such initiatives to promote these priorities.”

“This project is a demonstration of our commitment to powering progress by providing more and cleaner energy,” Eng. Khaled Kacem, vice president and country chair of Shell Egypt, said. “As partners in Egypt’s journey to become a regional energy hub we are also mobilizing our efforts and expertise to support the country’s energy efficiency ambitions. This is also a significant step towards full implementation of the decarbonization Memorandum of Understanding between Shell and the Ministry that was signed earlier this year.”

“This project is an excellent example of private and public sector partnership to support Egypt’s decarbonization strategy,” Paul Marsden, president of Bechtel Energy said. “Our Bechtel team is looking forward to continuing to support Egypt’s climate change strategy.”

Bechtel, Enppi and Petrojet will execute the FEED on a fast-track basis aiming to complete the scope of work within 2022.

The project is a testimony to the operational excellence in WDDM and ELNG plants. Reducing greenhouse gas emissions and optimizing fuel consumption and running hours of the rotating equipment will enhance production and reduce operating cost.

Source: Bechtel 

Petrofac awarded major Australian decommissioning contract

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Petrofac, a leading provider of services to the global energy industry, has been awarded a major decommissioning contract by the Australian Government, heralding the start of an era of decommissioning in the nation’s offshore oil and gas sector.

Petrofac’s Australia team based in Perth, WA, has been contracted to complete Phase 1 of the decommissioning of the Northern Endeavour FPSO (Floating Production, Storage and Offtake) facility.

The contract, awarded by the Federal Department of Industry, Science, Energy and Resources, follows a stringent selection and due diligence process by the Government of Australia. The value to Petrofac of Phase 1 has the potential to be up to AUD$325 million (US$236 million).

The contract sees Petrofac as Outsourced Operator responsible for decommissioning and disconnection of the FPSO from its subsea equipment, and temporarily suspending the wells. Disconnection of the FPSO is expected to occur over approximately 18 months. Petrofac’s scope includes the provision of its unique integrated services, working with both local and global suppliers.

The Northern Endeavour is a 274-metre long FPSO facility, currently not producing oil, moored between the Laminaria and Corallina oil fields about 550 kilometres northwest of Darwin in the Timor Sea.

Josie Philips, Petrofac’s Regional Director, Australia, said:

“This contract builds on 15 years of working in Australia and is further proof of our growing and long-term ambitions in the country. A critical element will be upskilling the local workforce to meet the challenges of billions of dollars of decommissioning work in Australia now and in the future. It is Petrofac’s aim to be a local company, growing local jobs, local skills and the local supply chain. I’m delighted that we have Monadelphous and Linch-pin already on board.”

Nick Shorten, Chief Operating Officer for Petrofac’s Asset Solutions business, said:

“This contract recognises our unrivalled decommissioning credentials, as the only tier one contractor with the in-house capability to manage all well and asset decommissioning phases. The contract builds on our existing track record for delivering well operator and project management services for clients globally, having successfully delivered numerous multi-well decommissioning campaigns.”

Together Petrofac and its supply chain partners, including Monadelphous and Linch-pin, will ensure the safe and cost-effective removal of the FPSO from the field in accordance with good industry practice. All activities will be done in close consultation with the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) to make sure strict safety and environmental protections are in place.

Source: Petrofac

Petrofac to explore feasibility of green hydrogen to ammonia facility in Egypt

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Petrofac, a leading international service provider to the energy industry, has won its first new energies project in Egypt with an in-country subsidiary of Egypt-focused Mediterranean Energy Partners (MEP).

The project is an early-stage study assessing the feasibility of a new green hydrogen to ammonia facility that will target the production of 125,000 tonnes of green ammonia a year for export, using a mix of solar and wind energy. Petrofac’s scope will be key to successfully delivering the project and includes sizing the electrolysers and the feasibility of export facilities at Ain Sokhna Port on the Gulf of Suez.

Alex Haynes, Head of Business Development, New Energy Services, Petrofac, said:

“We’re delighted to be supporting Mediterranean Energy Partners with its strategic green energy project. This award builds on our growing track record in the new energy space and recent green hydrogen projects in Australia, the UK, and other global locations. Egypt is moving fast to develop its natural advantages for green energy with its abundant solar and wind resources, coupled with its strategic geographic location for exporting zero carbon products, and Petrofac is thrilled to be supporting this growth.”

Taner Sensoy, CEO of Mediterranean Energy Partners, commented: “We are excited to work with Petrofac on the feasibility of our export focused green hydrogen/ammonia production facility. We believe that green hydrogen will play a critical role in the energy transition. Egypt is uniquely positioned to provide low-cost renewable energy, access to export markets, and track record of hosting large scale projects with available talent, services, and infrastructure. We are eager to be part of Egypt’s success story in the energy transition ecosystem.”

Source: Petrofac

Petrofac secures UK contract extension with Neptune Energy

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Petrofac, a leading international service provider to the energy industry, has secured a two-year contract extension for engineering services on Neptune Energy’s Cygnus Alpha and Bravo platforms in the UK Southern North Sea.

Petrofac will provide a range of brownfield engineering, procurement, construction and commissioning services for the Cygnus field. It follows the award of a separate, three-year contract extension to the company earlier this year, for operations and maintenance support in the UK.

Earlier this year, Petrofac celebrated its 10th anniversary of supporting the Cygnus field, having begun working on the pre-operational phase of Cygnus in 2011.

Petrofac’s Chief Operating Officer Nick Shorten said:

“Our operations experience on Cygnus gives our engineering team unique insight into how to manage key brownfield integrity scopes and EPC modifications with ultra-efficient results; reducing impact on operations and minimising downtime in order that Neptune can continue to meet critical energy demand.

“We are delighted to have the opportunity to build on that approach, and further strengthen our long-term partnership with Neptune Energy.”

Neptune Energy’s UK Managing Director, Alexandra Thomas, said: “Petrofac is an important partner for Neptune Energy in the UK with a strong and well-established understanding of the Cygnus assets.

“The offshore team’s detailed knowledge supports the safe and optimal operation of the facility, and reduces time and costs associated with planning engineering activities. This is crucial given Cygnus is a key component of the UK North Sea’s energy infrastructure, capable of producing 6% of UK domestic gas demand.”

The contract extension will take effect from 1 January 2022.

Source: Petrofac

Petrofac secures new EPCC contract with PETRONAS

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Petrofac has been awarded with a new contract worth around MYR399 million (approx US$96 million) by PETRONAS Carigali Sdn. Bhd., a subsidiary of PETRONAS, the Malaysian National Oil Company. The Engineering, Procurement, Construction, and Commissioning (EPCC) scope of work will encompass the delivery of the new Bintulu Additional Gas Sales Facilities 2 (BAGSF-2) plant located onshore at Tanjung Kidurong, Bintulu, in the Malaysian state of Sarawak.

The greenfield development includes process and utilities unit, effluent treatment unit, metering skid, fire water tank, pumps, flare system and main substation building. In addition to the 390 MMSCFD capacity new facility, the project will also involve brownfield modifications and tie-in within the existing PETRONAS Plant, also located in Bintulu.

Petrofac Chief Operating Officer Nick Shorten said:

“We have been working closely with PETRONAS since 2004, using our broad services capability and expertise to support the development of Malaysia’s energy infrastructure. The contract will be delivered by Petrofac Group’s local subsidiary, Petrofac Engineering Services (Malaysia) Sdn Bhd, with engineering support from Petrofac-RNZ and local supply chain and subcontractors, further underpinning our commitment to local delivery.”

Source: Petrofac

Petrofac signs strategic partnership with green hydrogen firm, Protium

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Petrofac, a leading international service provider to the energy industry, announces the signing of a strategic partnership with leading UK green hydrogen energy company,  PROTIUM.

The strategic partnership aims to provide clients with access to Protium’s green hydrogen expertise and Petrofac’s world-class engineering, procurement and construction (EPC) and energy project delivery legacy – drawing this knowledge together to deliver market-leading, innovative green hydrogen and net zero projects across the UK.

The two brands will leverage Petrofac’s technical engineering expertise during the early phases of Protium’s projects with the aim of delivering the full EPC offering to shared clients. This includes projects involving the development of renewable energy assets, green hydrogen production facilities and downstream hydrogen equipment. Through this partnership, clients will benefit from the expedited delivery of green hydrogen projects that are both innovative and bespoke depending on the client’s sector and energy needs.

With an expanding CAPEX pipeline totaling more than £1 billion, Protium’s work assists businesses to transform their decarbonisation strategies to achieve net zero, specifically through the decarbonisation of mobility, thermal and electrical demand.

Commenting on the partnership, John Pearson, COO of Petrofac, said:

“The announcement of our alliance with Protium neatly demonstrates Petrofac’s commitment to support the creation of a more integrated energy future in the UK. We’re delighted to combine Petrofac’s engineering, project management and operations capabilities with Protium’s green hydrogen and project development expertise to support its target to deliver 1GW of production assets by 2030 for a range of industrial customers.”

Chris Jackson, CEO of Protium, said: “I am delighted to announce our partnership with Petrofac, whose world-leading experience in green hydrogen EPC work (notably with Infinite Blue Energy’s Arrowsmith project in Australia) will enable Protium to deliver exceptional projects for our clients. This marks another exciting chapter in the development of Protium as we continue to secure best-in-class partners, clients, sites and staff to accelerate the transition to net zero energy solutions.” 

Protium and Petrofac are already actively pursuing a number of commercial green hydrogen projects around the UK, as well as jointly bidding on multiple government-funded programs to demonstrate the technical and commercial effectiveness of green hydrogen solutions.

Source: Petrofac

Petrofac awarded EPCC contract in Bahrain

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The Engineering, Procurement, Construction, and Commissioning (EPCC) scope of work includes high pressure gas pipelines and fibre optic cabling. The underground pipelines will run through sections onshore and offshore below the seabed in support of gas supply to the Kingdom and will be designed for full interchangeability.

Commenting on the award, Nick Shorten, Petrofac Chief Operating Officer, said:

“Through our engineering and project execution capability, Petrofac has been supporting Tatweer Petroleum to deliver a number of key upstream gas projects in the Kingdom of Bahrain. We again look forward to applying our skills and expertise to safely deliver this critical infrastructure, which underpins the supply of energy to Bahrain.”

Petrofac has been present in Bahrain since 2015, following the award of an EPCC contract to supply a new gas dehydration facility by Tatweer Petroleum. The project was successfully completed in 2018, and additional scope of work was then secured by Petrofac for the engineering, procurement, and construction of several gas wells, to be connected to the facility. In June 2020, Petrofac was awarded a new multi-million dollar EPCC contract by Tatweer Petroleum for an upstream gas project that includes well hook-ups, associated pipelines, and tie-ins for several new gas wells that the company is planning to drill as part of its gas delivery strategy in the Bahrain Field.

Source: Petrofac

Petrofac secures Libya EPCC contract

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Petrofac has secured a contract valued at over US$100 million with Zallaf Libya Oil & Gas Exploration and Production Company, to deliver their Erawin Field Development Project Phase 1 Early Production Facilities.

The Engineering, Procurement, Construction and Commissioning (EPCC) scope of work encompasses surface equipment, including well pads and flowlines at the Erawin oil field, located in southwest Libya. It also includes a pipeline to transport crude oil around 100 kilometres to the El Sharara oil field and a control room, substation and telecom system located there.

Libya holds some of the largest oil reserves in Africa. Zallaf was established in 2013 to develop fields that have been discovered and appraised but not yet produced. It is a 100% subsidiary of the National Oil Company. In addition to this latest contract award, Petrofac is also currently providing Front-End Engineering Design (FEED) and conceptualisation studies, both upstream and downstream, for a number of clients in-country, with wider opportunities to position for EPC delivery.

Source: Petrofac

Petrofac to deploy global decom expertise in Australia, in contract first

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Petrofac’s Engineering and Production Services (EPS) business has strengthened its presence in Australia, having secured a Well Project Management contract in the country with PTT Exploration and Production (PTTEP).

Under the terms of the agreement, Petrofac will provide all project manpower to enable the execution of plug and abandonment operations on two of PTTEP’s remaining subsea wells in the Vulcan Basin, located in North West Australia. Work will include detailed planning, procurement services including tender for a semi-submersible rig, and management of operations and sub-contracted services.

Today’s announcement builds on Petrofac’s ongoing expansion in Australasia and reflects the continued global growth of its Well Engineering capabilities.

Commenting, Nick Shorten, Managing Director for Petrofac Engineering and Production Services (West), said: “The award of this contract is testament to our track record for delivering Well Engineering and decommissioning services for our clients globally. Our teams have operated in Australia for more than a decade working on some of the region’s largest energy developments, but we are particularly excited to be deploying our Well Project Management capability and expertise there for the first time.

“When it comes to decommissioning, we understand the focus on cost and schedule is as important as ever. We look forward to working closely with PTTEP to deliver a safe and predictable plug and abandonment campaign.”

Source: www.petrofac.com

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Petrofac and Storegga partner to build new energy capability for the UK

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Petrofac, the international service provider to the energy industry, has signed a Memorandum of Understanding (MOU) with independent clean energy champion, Storegga Geotechnologies.

The MOU builds new energy capability and capacity in the UK and represents a significant strategic step in Petrofac’s continued expansion into new and renewable energy.

The agreement supports Petrofac and Storegga to collaborate on potential business development and project initiatives in Carbon Capture and Storage (CCS), Hydrogen and other low carbon projects. With an initial focus on the UKCS and North West Europe, the MOU also includes scope for the parties to work together internationally.

Petrofac was recently awarded a Project Management Office support contract for the Acorn project with Pale Blue Dot, of which Storegga is the holding company.

Source: Petrofac

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Petrofac awarded EPCC contract by Tatweer Petroleum

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Petrofac’s Engineering & Production Services division (EPS) has been awarded a multi-million dollar engineering, procurement, construction, and commissioning (EPCC) contract by Tatweer Petroleum, for an upstream gas project in Bahrain.

Under the terms of the contract, the scope of work includes well hook-ups, associated pipelines, and tie-ins for several new gas wells that Tatweer Petroleum is planning to drill as part of its gas delivery strategy in the Bahrain field.

Mani Rajapathy, Managing Director, EPS East, commented:

This award demonstrates continued confidence in our teams to deliver safe, timely, and efficient solutions for key projects in Bahrain. It leverages Petrofac’s best-in-class expertise and experience in upstream gas. Tatweer Petroleum is an important customer in the region, and we look forward to continuing our relationship with them and furthering our commitment to building capability in the Kingdom.

Petrofac has been present in Bahrain since 2015, following the award of an EPCC contract to supply a new 500 MMSCFD gas dehydration facility by Tatweer Petroleum. The project was successfully completed in 2018, and additional scope of work was awarded to Petrofac for the engineering, procurement, and construction of several gas wells, to be connected to the facility.

Source: Petrofac

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Petrofac awarded significant North Sea well management contract

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Petrofac’s Engineering & Production Services business (EPS) announces that it has secured a well management contract for Phase 1 of Independent Oil and Gas plc’s (IOG) Core Project. 

Petrofac will support IOG’s development of the Southwark, Blythe and Elgood fields in the UK Southern North Sea (SNS). The five-well contract scope covers the planning, execution and close-out phases of the Phase 1 drilling programme, with Petrofac intended to act as Well Operator on behalf of IOG, a role it has performed for nine other companies in the UK North Sea.

The planning phase includes detailed well design, risk assessment and management of well-related regulatory requirements. During the execution phase Petrofac will manage well engineering, procurement and logistics, assure well construction and integrity, and provide onshore and offshore personnel to support the drilling campaign.

Nick Shorten, Managing Director for Petrofac Engineering and Production Services West, said: “We are thrilled to be supporting IOG’s prestigious SNS gas development project. Through the deployment of our extensive asset and well management expertise, we will work closely with IOG to assure the integrity of the wells and deliver a safe and cost-efficient drilling programme to support the advancement of their development.”

Andrew Hockey, CEO of IOG, commented: “We are very pleased to have selected Petrofac as the well management contractor for Phase 1 of our core UK SNS gas development. Petrofac has demonstrated that they have the right credentials and expertise to execute what will be a critical role in helping IOG to deliver a safe, productive and cost-effective five-well Phase 1 drilling campaign kicking off in the first half of next year.

“The IOG drilling and subsurface teams have already established a strong working relationship with the Petrofac team in recent months and this will deepen further as Phase 1 drilling preparations ramp up.”

Source: Petrofac

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Petrofac secures BP maintenance and metering contracts

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Petrofac is set to build on its provision of digitally enhanced services for BP, following the award of a three-year extension to its existing maintenance contract and a new four-year metering contract.

The metering services contract includes on and offshore consulting and support services. Under the agreement, Petrofac will continue to harness digital technology to drive improvements and increase efficiencies for BP.

Under the terms of the maintenance agreement, Petrofac will continue to provide campaign inspection and maintenance services on the Operator’s North Sea assets, many of which Petrofac has supported for the last decade.

In 2019, Petrofac worked with BP to prove new execution techniques. Combining use of Digital Twin technology, Connected Worker and Petrofac’s proprietary software, BuildME™, Petrofac digitalised all forms of campaign maintenance and inspection activity – achieving significant productivity gains compared to industry standards – and continues to work with BP to extend the benefits of this approach to other applications.

Nick Shorten, Managing Director, Petrofac Engineering and Production Services, West, said:

“We are proud to build on our long-standing relationship with BP, who have been an early adopter of our digital execution processes. We look forward to building on the gains made through this approach and establishing our metering services provision.”

Source: Petrofac

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Petrofac Wins US$130 million in PDO awards

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Petrofac announces a new contract and the award of the additional scope of work with Petroleum Development Oman (PDO), with a combined value of approximately US$130 million.

The new contract award, under a 10-year Framework Agreement signed in 2017 with PDO, is an Engineering, Procurement and Construction Management (EPCM) services contract for the Mabrouk North East Development Project in Oman.

The full field development of Mabrouk North East field is planned to be executed in a phased approach. The 34-month project scope awarded involves the development of 16 gas producing wells and export of the production to the Saih Rawl Central Processing Plant. The project will be integrated with the Mabrouk North East Line Pipe Procurement Project, which was awarded to Petrofac in June 2019.

The other scope of work awarded is to provide further services for PDO’s Yibal Khuff Project. This 20-month contract includes detailed Engineering, Procurement, and support for Construction and Commissioning of nine additional wells to improve overall plant production, and laying of gas pipeline from Yibal “A” to the main processing facility.

The Yibal Khuff Project, originally awarded to Petrofac in June 2015, is already in an advanced phase of construction and pre-commissioning, and the delivery of additional wells is to be synchronised for overall readiness.

Elie Lahoud, Group Managing Director, Engineering & Construction said: This latest project award under the long-term framework agreement with PDO for Mabrouk North East, and additional scope of work for the Yibal Khuff Project, both further underpin our significant track record and commitment to delivering value in Oman. Our focus will remain on safe operations and maximizing in-country value through the continued development of local workforce competence and strong supply chain partnerships.

Source: https://www.petrofac.com/en-gb/media/news/petrofac-secures-us-130-million-in-pdo-awards-news-petrofac/