Petrofac (LON:PFC) has secured a three-year framework agreement with French oil and gas supermajor TotalEnergies.
Under the deal, Petrofac will provide engineering, procurement, construction and commissioning (EPCC) services across all of TotalEnergies’ UK continental shelf (UKCS) assets.
Petrofac asset solutions chief operating officer Nick Shorten: “In a mature basin like the UKCS – where enhanced recovery, field life extension and decarbonisation are key – this framework recognises our ability to combine our extensive engineering and construction expertise and offshore operations experience to support TotalEnergies.”
The latest Petrofac deal contributes to a strong run of contracts secured in 2023, which saw the group’s order book stand at $6.6 billion by the end of June, up from $3.4bn in January.
© Supplied by Culzean platformHowever, despite the strong contract performance Petrofac has seen its share price tumble in recent weeks and its credit rating downgraded by Fitch.
As a result, the company said it is “examining a range of strategic and financial options” to improve its balance sheet including selling off “non-core assets”.
Petrofac North Sea deals
Petrofac did not disclose the value of the contract with TotalEnergies, but the company has secured several large contracts in 2023.
A strong order book this year has seen the London-listed firm hire 3,000 people across 12 months.
Over 1,000 of those hired have been in the UK, where the company has renewed more than 80% of its existing work.
Landmark North Sea deals secured by Petrofac this year include a three-year contract extension with Repsol Resources UK worth $100 million.
© PetrofacThe deal, supporting UK North Sea operations, supports more than 300 jobs across 10 offshore assets, as well as a pair of onshore oil terminals.
Petrofac also signed an extension to its integrated services contract with NEO Energy worth £250 million.
The deal will see Petrofac continue its maintenance, engineering and construction work on NEO Energy’s UK-based floating production storage and offloading (FPSO) vessel, Global Producer III.
Italian oilfield services firm Saipem also awarded Petrofac a new multi-million-pound deal to support the decommissioning of a platform in the UK sector of the North Sea.
International contracts
In addition to its growing North Sea order backlog, Petrofac has also secured several large contracts internationally.
The company secured an E&C contract for one of the Middle East region’s largest carbon capture, utilisation and storage (CCUS) schemes from Emirati state-owned firm ADNOC Gas.
Worth more than $600 million, the scope of work for the Habshan project involves the delivery of carbon capture units, associated pipeline infrastructure and a network of wells for carbon dioxide (CO2) recovery and injection.
© PetrofacLocated at the Habshan gas processing plant, 150 kilometres southwest of Abu Dhabi, the project is part of ADNOC’s “accelerated decarbonisation plan”.
Petrofac also secured a $1.5 billion EPC contract for a petrochemical complex in Algeria awarded by a subsidiary of state-owned Sonatrach.
In July, the company also won a three-year multi-million pound facilities management contract from CNR International offshore Cote d’Ivoire, on the Espoir Ivoirien FPSO.
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