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2013 Top EPC Contractorsby Arabian Oil & Gas Staff on Apr 30, 2014
US$12 billion project backlog and constant award momentum sees regional dominance continue for irrepressible EPC giant
Despite E&P spending reviews across much of the GCC energy business, one firm has continued to outstrip the competition to once again top the Oil & Gas Middle East Top EPC Contractors Annual List.
In the period between June 2012 and May 2013 alone, Petrofac won US$7.15 billion worth of regional projects, and in the weeks running up to the Top EPC List’s publication, the firm trounced the pack with a further major wins in Oman and Abu Dhabi.
Large contract awards have continued for the EPC powerhouse. In April of this year the company announced Petrofac Emirates, its Joint Venture with Mubadala Petroleum, has been awarded a contract by Zakum Development Company (ZADCO) for the Upper Zakum, That partnership has proved a canny bit of business for the international player, seeing the firm continue to gain market share on the lucrative and highly profitable UAE upstream market.
The UZ750 contract is worth approximately US$3.7 billion and has been secured by Petrofac Emirates in consortium with Daewoo Shipbuilding & Marine Engineering Co Ltd (DSME). Petrofac Emirates’ share of the contract is valued at US$2.9 billion.
Even more recently, in June, Petrofac added to its global operations and maintenance portfolio with the announcement of a new agreement, worth US$50 million, with Oman Oil Company Exploration and Production LLC (OOCEP).
The contract, for an initial period of three years, will see Petrofac deliver operations and maintenance at two new production facilities on behalf of OOCEP, the upstream subsidiary of Oman Oil Company, the national oil company of Oman.
These projects are OOCEP’s new Musandam Gas Plant in Bukha, Musandam, which comprises an onshore plant and utilities for receiving well fluids from offshore platforms in the West Bukha field; and the Abu Tubul onshore development in central Oman, which comprises multiple production wells, connected via a gathering and trunk line system to a gas processing plant. Both production facilities are currently under construction.
In April this year Petrofac won the EPIC contract for ADMA-OPCO’s Satah Al Razboot (SARB) package 3 project, offshore Abu Dhabi. The US$500 million competitively tendered contract is thought to have commenced already for an April 2016 delivery.
The SARB Project is a high priority and new field development off the northwest coast of Abu Dhabi.
Drilling will be conducted from two artificial islands (SARB1 and SARB2) with the well fluid sent by subsea pipeline to a facility on Zirku Island for processing, storage and export.
Under the terms of the contract Petrofac will deliver 200km of subsea pipelines for well fluid, water injection, gas injection, flare and export, along with 3km of onshore pipeline and 55km of subsea power and communication cables.
Regional success hasn’t been confined to the UAE and Oman. In December 2012 the company two engineering, procurement and construction (EPC) packages for Saudi Aramco’s Jazan Refinery and Terminal project.
When complete, the refinery will produce around 400,000 barrels of oil per day and have associated terminal facilities on the Red Sea near Jazan in the south west of the Kingdom of Saudi Arabia.
The combined value of the EPC contracts is around US$1.4 billion. Petrofac’s Saudi Arabia office will lead the project management delivery of the work scope which covers tank farms in the north and south areas of the development.
The company continues to top our List of best performers thanks to its irrepressible abilty to keep winning major, regionally influential projects.
The company’s group backlog at the end of May stood at US$11.9 billion, much of it derived from Middle Eastern work.
In a recent interim statement Ayman Asfari, Petrofac’s Group Chief Executive commented: “We have made a good start to the year, with positive progress across our portfolio of active projects, which remains in excellent shape. We have secured a number of important new contract awards in the year to date and we continue to see many new and attractive opportunities across the Group.
“Our strategy for long-term sustainable growth is based on three key drivers: expanding our existing business into new geographies; developing our leading EPC offering offshore; and delivering on our plans for Integrated Energy Services.”
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