Energy services giant Petrofac (LON:PFC) has secured a contract extension in the Southern North Sea with ONEgas West.
ONEgas West is a Shell-owned venture operated by NAM, a joint venture between Shell and Exxon.
The two-year brownfield engineering, procurement and construction (EPC) contract extends the previous three-year deal. Petrofac did not disclose the value of the contract extension.
Petrofac asset solutions chief operating officer Nick Shorten said the contract award demonstrates ONEgas’s continued confidence in its teams in Great Yarmouth and Aberdeen.
“We are delighted to continue to be a partner of choice, in one of our core markets,” Mr Shorten said.
The latest contract for Petrofac follows a three-year deal agreed with oil and gas supermajor TotalEnergies last year.
The agreement covered all of the French firm’s assets in the UK continental shelf.
Petrofac troubles
The contract extension comes at a time when Petrofac continues to work to stem the collapse of its share price.
The London-listed firm, which employs 8,500 people worldwide, has seen a collapse in its stock price of nearly 70% over the last six months, and down more than 25% since its last trading update in December.
Despite a run of contract awards, which have masked the issues to a degree, investor concerns have emerged around cash flow and profitability as debt and delayed collections on legacy contracts weigh it down.
In December, Petrofac said it would take a $110m write-down for 2023 on contract agreement issues.
Recommended for you
