Petrofac to Lead Development

RNS Number : 3337A

Petrofac Limited

31 January 2011

 



Press Release

31 January 2011

PETROFAC LIMITED

PETROFAC TO LEAD DEVELOPMENT OF BERANTAI FIELD FOR PETRONAS

Petrofac, the international oil & gas facilities service provider, announces that it has signed a Risk Service Contract (RSC) to lead the development of the Berantai field, - offshore Peninsular Malaysia, for Petroliam Nasional Berhad ('PETRONAS'), the Malaysian national oil company. Petrofac has a 50% interest in the RSC, alongside local partners Kencana Energy Sdn Bhd ('Kencana') and Sapura Energy Ventures Sdn Bhd ('Sapura'), both of which hold a 25% interest (together the 'Berantai partners'). The Berantai partners will develop the field and will subsequently operate the field for a period of seven years after first gas production.

As part of the fast-track development, a wellhead platform will be installed to support the drilling of eighteen wells, with a second wellhead platform expected to be installed in a subsequent phase. Both platforms will be connected to a Floating Production Storage and Offloading (FPSO) vessel which will be jointly owned by the Berantai partners. The FPSO will undergo modification to ensure suitability for the Berantai development. Produced gas will be exported by subsea pipeline via the Angsi Field, while oil will be offloaded via shuttle tanker.

The project is targeting first gas by end of December 2011 with the first phase wells expected to be completed during 2012. The full field development, excluding delivery of the FPSO, is anticipated to require capital investment of approximately US$800 million (of which Petrofac's share is 50%). Under the terms of the RSC, the Berantai partners will receive a rate of return linked to their performance against an agreed incentive structure, including project costs, timing to first gas and sustained gas delivery after project completion, with an ongoing incentive structure based on operational uptime.

Rob Jewkes, managing director, Petrofac Energy Developments added: "We are delighted to be working with PETRONAS, a customer we know well. While continuing to develop the first and second phases of the Cendor field, we are pleased that PETRONAS has once again chosen to partner with Petrofac. We are looking forward to drawing upon our experience of fast-track developments to provide a range of fully integrated services from design and construction through to sub-surface capability and operations."

Ayman Asfari, Petrofac's group chief executive commented: "We are looking forward to working with local partners Kencana and Sapura, both of whom bring unique capabilities and local knowledge, on this exciting project. We aim to demonstrate how the integrated delivery of our services can add significant value for resource holders under an alternative commercial framework, where they retain full ownership of their resources and where our returns are linked to project delivery, to create perfect alignment with the resource holder's objectives."

Ends

For further information contact:

Tulchan Communications Group Ltd                                  [phone]

James Bradley

David Allchurch

[e-mail]

Notes to Editors

The Berantai Field

The Berantai field is located approximately 150 km offshore Peninsular Malaysia, 10km south of the Tapis Field and 15km northeast of the Angsi Field.

Kencana Energy Sdn Bhd

Kencana Energy is part of Kencana Petroleum Berhad group of companies, an oil and gas service group based in Malaysia. The group is primarily involved in engineering and fabrication of offshore and onshore production facilities, process skid systems, offshore hook-up and commissioning, brownfield services, offshore drilling, and offshore support vessel services. Kencana Petroleum group is one of the leading engineering and fabrication companies in Malaysia with a very good track record of delivering projects to PETRONAS and other international oil companies. Among those many projects was the conversion work on a jack-up rig into a mobile offshore production unit which is currently being used for the Cendor oil field. The group is also active in Asia with current and past EPCC and offshore support services projects in Thailand, Vietnam, India, Australia and the Middle East.

For additional information, please refer to the website at www.kencanapetroleum.com.my.

Sapura Crest Petroleum

The Sapura Group, a 100% Malaysian-owned technology-based organisation has taken the lead in the acquisition and development of strategic technologies for the past three decades. Established in 1975, from humble beginnings as a telecommunications infrastructure & service provider, the Group has expanded and diversified its businesses across four major areas, namely:

- Oil & Gas

- Secured Technologies

- Industrial & Automotive Manufacturing

- Knowledge & Education

The Group's listed entities are SapuraCrest Petroleum Bhd, Sapura Industrial Berhad and Sapura Resources Berhad.

Sapura's persistent efforts in capability-building of home-grown talents and aggressive investment in R&D have positioned the Group to be globally competitive, producing highly-specialised and multi-skilled pool of technology experts. Sapura Group today has capabilities and competencies that cover the full lifecycle of systems and products.

The Group's globalisation efforts have taken us to countries such as Australia, Singapore, Brunei, Thailand, Norway, Philippines, Brazil, Japan, India, Indonesia and the Middle East.

For additional information, please refer to our website at www.sapura.com.my.

Petrofac

Petrofac is a leading international provider of facilities solutions to the oil & gas production and processing industry, with a diverse customer portfolio including many of the world's leading integrated, independent and national oil & gas companies. Petrofac is quoted on the London Stock Exchange (symbol: PFC) and is a constituent of the FTSE 100 Index. 

The group delivers services through seven business units: Engineering & Construction, Engineering & Construction Ventures, Engineering Services, Offshore Engineering & Operations, Training Services, Production Solutions and Energy Developments.

Through these businesses Petrofac designs and builds oil & gas facilities; operates, maintains and manages facilities and trains personnel; enhances production; and, where it can leverage its service capability, develops and co-invests in upstream and infrastructure projects. Petrofac's range of services meets its customers' needs across the full life cycle of oil & gas assets.

With more than 13,000 employees, Petrofac operates out of six strategically located operational centres, in Aberdeen, Sharjah, Woking, Chennai, Mumbai and Abu Dhabi and a further 19 offices worldwide. The predominant focus of Petrofac's business is on the UK Continental Shelf (UKCS), the Middle East and Africa, the Commonwealth of Independent States (CIS) and the Asia Pacific region.

For additional information, please refer to the Petrofac website at www.petrofac.com.

 

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