Trading Statement

Petrofac Limited
12 January 2006


12 JANUARY 2006

                                PETROFAC LIMITED
                                  ("Petrofac")

                                 TRADING UPDATE

Petrofac, the international oil and gas facilities service provider, issues the
following pre-close trading update ahead of the preliminary announcement of its
audited results for the year ended 31 December 2005, expected to be on 16 March
2006.

The market for our services has been strong during 2005 and we have achieved
significant growth in our Engineering & Construction and Operations Services
divisions. In addition, we are pleased to report positive progress towards
settling outstanding claims in relation to the Baku-Tbilisi-Ceyhan and South
Caucasian Pipeline (BTC/SCP) project. Before taking account of the positive
impact of any write-back of provisions on the BTC/SCP project, the Board
anticipates that the Group's financial performance for 2005 will be slightly
ahead of the top end of the range of current market expectations which, for
normalised net income from continuing operations, range from $57.1 million to
$59.5 million.

We enter 2006 with record revenue backlog, in particular in our Engineering &
Construction division, and this provides the Board with confidence that we will
continue to make good progress in the year ahead.


Operational and business development

During the year, we secured a significant level of new business across our
Engineering & Construction and Operations Services divisions.

Our Engineering & Construction division secured new contract awards amounting to
nearly $2 billion during the year, including the Harweel development in Oman
(valued at approximately $1 billion), the KOC upgrade project in Kuwait ($644
million), the Kauther gas plant in Oman ($246 million) and the Kovykta project
in Russia ($60 million). In addition, we were pleased to be awarded the
construction management contract for the Kashagan onshore development in
Kazakhstan, which follows on from the engineering and procurement contract on
this project which we are currently undertaking.

We have continued to make satisfactory physical progress on the BTC/SCP oil and
gas pipelines and facilities contract in Azerbaijan and Georgia. The oil
pipeline and related facilities have been completed and handed over to the
client and the gas pipeline and related infrastructure are now substantially
complete with all works anticipated to be concluded within the next few months
We are also pleased to report that positive progress is being made with regard
to the settlement of outstanding claims and variation orders as a result of
which we expect to be able to report, as at 31 December 2005, a partial
write-back of the provision held against this contract as at 30 June 2005. These
matters remain subject to further discussion and the execution of formal
documentation.

The Operations Services division won a number of significant contract awards and
renewals in the UKCS including five year operations support contracts with
Mobil, Marathon Oil, CNR International and a one year contract with Maersk.
During the year, in the UKCS, we commenced work for Lundin on the turnkey
facilities management contract for the Heather and Thistle platforms and also
extended our relationship with Tullow Oil in taking responsibility for the
Schooner & Ketch and Horne & Wren fields. Outside the UKCS, we completed the
substantial mobilisation required for our maintenance contract with KOC in
Kuwait.

Following the acquisition of Paladin Resources by Talisman Energy in November
2005 we have been in discussions with Talisman concerning the status of the
turnkey facilities management contract for the Montrose and Arbroath platforms.
Talisman has indicated that they wish us to continue to provide operations
support services on these assets whilst they assume the duty holder role, in
line with their established operating strategy in the UKCS.  We are working
closely with Talisman to finalise the details of these arrangements.

Our Resources division continues to review investment opportunities where we can
generate incremental value through the provision of engineering and operations
services, encompassing both upstream and infrastructure developments in both the
UKCS and internationally. Following an aggressive timetable for its preparation,
the field development plan for the Cendor field in offshore Malaysia was
approved in February 2005. Good progress has been made since approval, with the
field scheduled to come on-stream during the second half of 2006. Within
upstream UKCS, we were awarded the 211/18c block in the Don area in the recent
23rd round and we are actively seeking further development opportunities around
the licence area.


Backlog

As at 31 December 2005, total revenue backlog(see note) amounted to
approximately $3.2 billion, an increase of approximately 28 per cent. compared
to 30 June 2005 ($2.5 billion) and an increase of approximately 88 per cent.
compared to 31 December 2004 ($1.7 billion). In addition, we are also providing
services under letters of award which, when formal contracts are entered into,
are expected to add a further approximately $0.3 billion to revenue backlog.


                                      Ends


For further information, please contact:

Petrofac Limited                                            [phone]
Ayman Asfari, Group Chief Executive
Keith Roberts, Chief Financial Officer
Robin Caiger, Head of Investor Relations

Bell Pottinger Corporate & Financial                        [phone]
Ann-marie Wilkinson
Geoff Callow



Notes to Editors

Definition of backlog

Backlog consists of the estimated revenue attributable to the uncompleted
portion of lump sum engineering, procurement and construction contracts and
variation orders plus, with regard to engineering services and facilities
management contracts, the estimated revenue attributable to the lesser of the
remaining term of the contract and, in the case of life of field facilities
management contracts, five years. To the extent work advances on these
contracts, revenue is recognised and removed from the backlog. Where contracts
extend beyond five years, the backlog relating thereto is added to the backlog
on a rolling monthly basis.

Backlog includes only the revenue attributable to signed contracts for which all
pre-conditions to entry have been met and only the proportionate share of joint
venture contracts that is attributable to Petrofac. Backlog does not include any
revenue expected to arise from contracts where the client has no commitment to
draw upon services from Petrofac.

Backlog is not an audited measure. Other companies in the oil and gas industry
may calculate this measure differently.


Petrofac

Petrofac is a leading international provider of facilities solutions to the oil
and gas production and processing industry, with a diverse client portfolio
including many of the world's leading integrated, independent and national oil
and gas companies. Petrofac is quoted on the London Stock Exchange (symbol: PFC)
and is a constituent of the FTSE 250 Index.

Through its three divisions, Engineering & Construction (E&C), Operations
Services (OS) and Resources, Petrofac designs and builds oil and gas facilities;
operates, maintains or manages facilities and trains personnel; and, where
return criteria are met and service revenue synergies identified, co-invests
with clients and partners. Petrofac's range of services allows it to help meet
its clients' needs across the life cycle of oil and gas assets.

Petrofac operates out of four strategically placed international centres in
Aberdeen, Scotland; Sharjah, UAE; Mumbai, India; and Woking, England, and has a
further 13 offices worldwide, with approximately 5,500 employees.

Petrofac's business is focused on the UK Continental Shelf (UKCS), the Middle
East, Africa and the Former Soviet Union (FSU). Through both organic growth and
strategic acquisition, Petrofac's engineering, procurement and construction
activities have been complemented with development planning and early stage
engineering services, facilities management and training services and
co-investment.

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



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