Energy service firm Petrofac today announced the award of a one-year extension to its integrated services contract with North Sea operator Neo Energy.
London-listed Petrofac said Neo, which is backed by Norwegian private-equity firm HitecVision, granted the extension eight months ahead of the renewal date.
The contract for operations, maintenance, engineering and construction support will now run through to December 2022.
The deal value was not disclosed.
Last year, Petrofac supported the transition of operations on the Quad 15 and Flyndre area following their acquisition from Total by Neo.
Petrofac also assumed responsibility for ongoing operations, maintenance, engineering and construction.
Also last year, under a separate two-year agreement, Petrofac’s well engineering team were selected by Neo to lay on well management and support for 25 production wells across the Affleck, Balloch, Dumbarton, Flyndre and Lochranza fields.
Nick Shorten, managing director for Petrofac in the Western Hemisphere, said: “We are thrilled to continue our support of Neo Energy’s late life asset strategy and pursuit of top-quartile uptime and efficiency.
“The early extension of our integrated services contract provides further endorsement of our ability to seamlessly deliver services across the asset lifecycle.”
Petrofac received a blow last month when Adnoc Group said it had been suspended from competing for contracts while a UK Serious Fraud Office (SFO) investigation rolls on.
The Abu Dhabi firm made the decision after the SFO announced in January that a former employee had pleaded guilty to further charges relating to contract awards in the country in 2013 and 2014.
Neo has been on the acquisition trail following its creation in October 2019 through the combination of Neo E&P and Aberdeen-based Verus Petroleum, both of which were Hitec-owned investment vehicles focused on the North Sea.
In February, Neo struck a deal to buy a package of North Sea assets from ExxonMobil and the following month swooped for Zennor Petroleum.
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