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 secures North Sea contract extension with Spirit Energy

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Petrofac, a leading international service provider to the energy industry, has been awarded a two-year Operations and Late Life Asset Support contract extension with Spirit Energy, building on its decade-long relationship with the Operator.

The contract includes the provision of Operations and Maintenance support for Spirit Energy’s York platform in the Southern North Sea, and Engineering, Project, and Consultancy services for all of the Operator’s North Sea assets.

Petrofac has supported Spirit Energy’s assets since 2012. From 2018 to 2019, it took part in preparation work for the decommissioning of the Operator’s Audrey and Ensign platforms.

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

“The renewal of this key contract is demonstrative of the successful working relationship our respective teams have developed over the past ten years and the value Petrofac has been able to add in the late life operations phase. Our support of Spirit’s recent life extension project on York, which has increased production by three to four years, is a great example of this. We look forward to continuing in this vein.”

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 new scopes with Cairn Oil & Gas, Vedanta, including first major O&M contract in India

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Petrofac, a leading provider of services to the global energy industry, has been awarded two new contracts with Cairn Oil & Gas, Vedanta Limited, India’s largest private oil and gas exploration company. With a combined value of approximately US$100 million, the wins include Petrofac’s first significant Operations and Maintenance (O&M) contract in-country; evidencing its geographical growth strategy in action.

Selected by Cairn to provide integrated O&M services in support of its upstream oil and gas facilities, Petrofac will supply expertise at the Ravva Oil and Gas field in the Krishna Godavari Basin, in coastal Andhra Pradesh. The duration of the contract is four-years, with an option to extend by 12 months. The scope of work includes full O&M of the facility, including offshore platforms, subsea pipelines and the onshore processing terminal.

Cairn has also selected Petrofac to undertake a lump-sum engineering, procurement, and construction (EPC) project to support the provision of Well Hook‐up and Surface facilities for the Raageshwari Deep Gas (RDG) Field, in Barmer, Rajasthan. Executed on a fast-track basis, the main scope of work includes bringing online additional wells, augmentation and modifications to handling and treatment facilities including electrical, instrument control, and safety and protection systems.

This follows a previous lump-sum EPC contract, valued at approximately US$233 million, which Cairn awarded to Petrofac in April 2018 for its RDG Field Development Project. This was safely and successfully completed, with the plant’s 72-hour Performance Guarantee Test Run in June 2021.

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

“The award of these contracts both deepens our footprint in India and supports the geographical growth of our Asset Solutions business, as it leverages more than 25 years of operations and maintenance expertise in India for the first time. We look forward to supporting Cairn through the safe and high-quality execution of these latest scopes which, in line with our local delivery model, will be supported by our world class engineering centres in Chennai and Mumbai.”

Speaking on the contracts, Prachur Sah, Deputy Chief Executive Officer, Cairn Oil & Gas, Vedanta Ltd. said:

“Petrofac has earned a global reputation for its engineering excellence in execution of projects for the upstream oil and gas sector. Cairn’s association with Petrofac furthers our long-term vision of optimisation of asset operations and achieving profitability. We are confident that this partnership will further strengthen our execution and operational excellence, enabling us to actualise our vision of adding 500 kboepd and doubling domestic crude production capacities.”

Source: Petrofac

Petrofac secures Lithuanian refinery EPC project

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Petrofac announces it has been awarded an Engineering, Procurement and Construction (EPC) contract, valued at around EUR550 million (approx US$640 million), from PC ORLEN Lietuva to support a comprehensive modernisation, environmental upgrade, and expansion programme at its Mažeikiai Refinery in North-West Lithuania.

The lump sum contract comprises engineering, procurement, construction, start-up and commissioning services, as ORLEN Lietuva invests to expand the existing refinery complex, raise capabilities, meet the requirements for cleaner fuels and improve operational and carbon efficiency of the plant. The scope of work encompasses mainly greenfield EPC development, with some brownfield modifications, as well as Front End Engineering Design (FEED) of relevant utilities and offsites. The contract includes the addition of a new residue hydrocracking facility and improvement of the existing facility. Project completion is planned by the end of 2024.

Elie Lahoud, Chief Operating Officer – Engineering & Construction, said:

“We are delighted to have secured such an important refinery project within the European Union as we demonstrate our growth strategy in new geographies. Petrofac has a well-established track record and significant experience in the refining sector, as customers transform existing facilities to produce higher quality, more environmentally friendly fuels. ORLEN Lietuva is a new customer for us, and we look forward to developing our relationship as we deliver locally, to the highest global standards, on a project that is an important part of Lithuania’s energy infrastructure.”

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

SOCAR Petrofac JV secures new Caspian contract

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Petrofac, in a joint venture (JV) with the State Oil Company of the Republic of Azerbaijan (SOCAR), has secured a new contract valued at around US$25 million to support the Azeri Central East (ACE) project operated by bp in Azerbaijan.

The scope of work includes the provision of Commissioning Technicians and other specialist personnel, mobilisation and associated services to support the project at both onshore and offshore work sites in-country.

The ACE project is the latest phase of development in the Azeri, Chirag and Deepwater Gunashli (ACG) contract area in Azerbaijan. The project is designed to produce up to 100,000 barrels of oil per day. Construction works are currently in progress with first oil expected in 2023.

Khalik Mammadov, SOCAR vice-president for HR, IT and regulations said:

The service sector has become one of SOCAR’s core activities in recent years. It plays an important role in our corporate development. The joint venture we have established with Petrofac is already operating at full capacity, expanding its scope of operations and achieving new successes. I believe that the agreement we signed with bp today will give a serious impetus to both the development of the joint venture and lifting our partnership with bp to a new level.

Patty Eid, Global Head of Petrofac Training Services and SOCAR Petrofac Board member commented:

This latest contract award builds on our expanding footprint in-country. The SOCAR Petrofac JV is well positioned to support bp’s operations more widely in the Caspian Sea. The development is already generating a significant number of jobs and our scope of work will involve the mobilisation of around 150 specialist personnel over the duration of the contract, and the provision of all associated support services, for the safe and successful performance of the commissioning work.

Source: www.petrofac.com

Petrofac secures enhanced North Sea contract with INEOS FPS

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Petrofac is set to build on its provision of Operations & Maintenance Support Services for INEOS FPS following the award of an enhanced five-year contract.

Under the terms of the agreement, Petrofac will continue to supply personnel to the Unity Platform in the Central North Sea, the onshore Cruden Bay Terminal and other landline sites. The contract has also been reconfigured to include engineering and construction support.

This award strengthens Petrofac’s existing relationship with INEOS FPS in the UKCS, where it already provides a Maintenance Consultancy service.

Offshore personnel will continue to be deployed via Petrofac’s dedicated 24/7 Delivery Hub, through which all of its Operations and Maintenance contracts are managed. The Hub offers flexibility of shared resources across contracts, enabling fluctuating client requirements to be managed in a flexible, cost-effective way.

Nick Shorten, Managing Director for Petrofac Engineering and Production Services, West, said: “Over the past year we have been supporting INEOS FPS as they work to transform the Forties Pipeline System, and during this time our teams have developed a great understanding of both our client’s onshore and offshore sites.

“The enhancement of this contract demonstrates our client’s continued confidence in our ability to maintain safe operations while delivering improvements to production efficiency. We very much look forward to continue working with INEOS to unlock further value.”

Source: www.petrofac.com

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Petrofac to support Australia’s largest commercial-scale green hydrogen project

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Petrofac’s Engineering and Production Services (EPS) business has been awarded its first ever green hydrogen Front End Engineering Design (FEED) contract for the landmark Arrowsmith Hydrogen Project, which will become Australia’s largest commercial-scale green hydrogen complex.

The contract represents a significant strategic step in Petrofac’s continued expansion into new and renewable energy and quickly follows its recently announced award and partnerships to support Carbon Capture Storage and hydrogen projects in the UK and abroad. Last month the company pledged its commitment to reach Net Zero emissions by 2030, with its EPS business expected to achieve Net Zero by 2025.

Awarded by Infinite Blue Energy Group (IBE), Petrofac’s scope of work includes reviewing the conceptual work carried out on the project to date and the execution of the FEED study. The scope will be undertaken by Petrofac’s teams in Perth, Western Australia and Woking, England.

As part of the main study, Petrofac will build a robust Engineering, Procurement and Construction (EPC) design, cost and schedule estimation to support final investment decision.

Located in Western Australia, the Arrowsmith Hydrogen Project is expected to commence production by the end of 2022 and will generate 25 tonnes of green hydrogen per day from the zero carbon energy sources of water, solar and wind. The project is expected to drive significant growth in regional jobs, energy security and a considerable reduction in Western Australia’s carbon emissions. Petrofac is working diligently to anticipate an early production target for IBE.

Commenting, Petrofac Engineering & Production Services’ Chief Operating Officer, and global Corporate Development Officer*, John Pearson, said: “Infinite Blue Energy has committed to become a true Carbon Zero commercial green hydrogen producer, the first of its kind in Australia.

Source: Petrofac

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Petrofac’s Engineering and Production Services (EPS) business secured a multi-million dollar Integrated Services Contract with Ithaca Energy

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Petrofac’s Engineering and Production Services (EPS) business today announces the award of a multi-million dollar Integrated Services Contract with Ithaca Energy (Ithaca).

In a new five-year deal, Petrofac will integrate operations, maintenance, engineering, construction, and onshore and offshore technical support across Ithaca’s North Sea operated asset base.

The contract extends Petrofac’s existing working relationship with Ithaca, as well as the duration and breadth of services it provides for the Alba, Captain, Erskine and FPF-1 assets, building on the operations, engineering and support services it has been providing since 2011.

Having expanded its in-house capabilities, Ithaca will assume Safety Case responsibility for the FPF-1 asset, whilst Petrofac continues to provide all services and 96 offshore team members for the asset under the new contract.

Commenting, Nick Shorten, Managing Director for Petrofac’s EPS business in the Western Hemisphere, said: “Now more than ever, it is vital that operators can have confidence in the supply chain to generate value for them. We’re achieving this for our clients by combining our integrated approach with the latest digital technology to drive efficiencies and increase productivity.

Source: Petrofac

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Petrofac joint venture secures EPCC contract in Kazakhstan with NCOC

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Petrofac’s Engineering & Production Services (EPS) division, in joint venture with Isker, a Kazakhstan company, has secured an Engineering, Procurement, Construction, Pre-commissioning and Commissioning (EPCC) contract worth approximately US$135 million for New Water Treating Facilities for North Caspian Operating Company (NCOC) in Atyrau, Kazakhstan.

The work scope for the 30-month project includes an inlet stream screening to remove debris, feed water tanks with oil skimmer and pumps, a clarifier system including flocculation, coagulation and oil skimmer, treated wastewater storage and pumps, sludge treatment and relative utilities.

The award of this project is in line with Petrofac EPS’s strategy to focus on and secure small greenfield and brownfield EPC projects, utilising its capabilities, footprint and infrastructure.

NCOC acts as the operator of the North Caspian Project, the first major offshore oil and gas development in Kazakhstan. The company started oil production at the Kashagan field in 2016 and production has now reached 380,000 barrels per day.

Source: Petrofac

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Petrofac secures UK renewals totalling US$100m

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Petrofac’s Engineering & Production Services business (EPS) has been awarded two three-year renewals in the UK, worth a combined total of more than US$100 million. Both awards come with options to extend beyond the initial term.

The awards, gained under a competitive tender process with an International Oil Company, involve the provision of Duty Holder support services for an offshore support vessel, and Operations and Maintenance services for an oil and gas development project and gas terminal.

Nick Shorten, Managing Director for Petrofac’s EPS business in the Western Hemisphere, commented: “These new contracts with a long-standing client are an excellent example of our ability to scale and integrate our service provision in line with their latest requirements. We very much look forward to combining our extensive operations’ experience and digital technology programme to deliver sustainably efficient support on these contracts.”

Source: Petrofac

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Petrofac awarded US$40 million project by Sharjah National Oil Corporation (SNOC)

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Petrofac’s Engineering & Production Services division (EPS) has been awarded an engineering, procurement, construction and commissioning (EPCC) contract by Sharjah National Oil Corporation (SNOC), worth around US$40 million, for a project in the United Arab Emirates.

The award demonstrates delivery against EPS’s strategy to secure smaller greenfield and brownfield EPC projects, utilising its footprint and infrastructure in existing core markets.

Mani Rajapathy, Managing Director, EPS East, commented:

“We are delighted to be awarded this contract by Sharjah National Oil Corporation, a longstanding Petrofac client that we have worked with successfully for many years. The award is important strategically as EPS looks to develop its track record in smaller greenfield and brownfield EPC projects. It also leverages Petrofac’s best-in-class expertise and experience in upstream gas and represents another win in one of our core markets of Sharjah and the UAE. We look forward to delivering a safe and successful project for SNOC.”

Source: www.petrofac.com