Petrofac said yesterday it had won its first offshore operations deal in Iraq.
The energy service giant will provide offshore operations and maintenance services for the Iraq crude oil export expansion project under the contract, worth about £63million.
Petrofac said the South Oil Company (SOC) had the option to extend the 12-month deal by a further two years.
It comes in the same week Petrofac said some awards for its onshore engineering and construction division in locations such as Iraq had been pushed back to next year, contributing to a 5.2% drop in its share price.
Yesterday’s deal is for work on new export facilities 37 miles offshore southern Iraq.
Marwan Chedid, chief executive of Petrofac’s engineering, construction, operations and maintenance division, said: “This is our first offshore operations contract in Iraq, which broadens the scope of our growing operations within an important country for Petrofac.
“This is also the first time Petrofac has contracted directly with an Iraqi national oil company, and we are delighted to begin our working relationship with SOC, a new and important customer for our group.
“We intend to deploy our capabilities together with our focus on delivery to enable SOC to operate its offshore facilities safely, while delivering increased crude export.”
SOC director general Dyeyaa Jaafar Hyjam said: “Petrofac was selected for this contract in recognition of the group’s capabilities and the good work it has undertaken within Iraq to date.
“Increasing the export of crude is a key driver for this important project and we are confident that Petrofac can help us deliver our targets and become a trusted partner for SOC over the long term.”
On Monday, Petrofac reported a 20% rise in turnover to £2billion for the first six months of the year, but shares dipped after the company said there had been delays to large contract awards in the likes of Iraq and Saudi Arabia.
The firm said it was still optimistic about its future in the North Sea, however.
Recommended for you
