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Home » Companies » PETROFAC LTD (PFC)




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Current disclosures in PETROFAC LTD, 3 currently shorting.

% Short

% Change

Date Changed


↑ 0.10%

Mon May 11, 2020


↓ -0.23%

Wed June 3, 2020


↑ 0.14%

Wed December 11, 2019

Total shorts: 4.22%

Posts: 227
Opinion: No Opinion
Posted: April 16, 2020


RNS Number : 8559J
Petrofac Limited
16 April 2020

Press Release

16 April 2020


Petrofac Ltd ("Petrofac" or "the Company") announces that its Petrofac Emirates joint venture has received notice of termination from Abu Dhabi National Oil Company (ADNOC) of two recently awarded contracts for the Dalma Gas Development Project. Petrofac is committed to working with ADNOC over the coming weeks to explore alternative options to deliver this project in a way that supports their strategic objectives within the current challenging environment.

The project, worth around US$1.65billion, and awarded in February 2020, comprised two packages. Petrofac Emirates' portion of the scope of work is valued at US$1.5billion.

Petrofac continues to progress execution of its remaining Group backlog of around US$7billion as planned and is still progressing with tendering for major contracts in Abu Dhabi. However, it anticipates this development may have an impact on the timing of their awards.

Posts: 227
Opinion: No Opinion
Posted: March 24, 2020

New Petrofac Contract

Sharjah National Oil Corporation (SNOC), today announced that its Moveyeid Gas Storage Surface Facility Project has been awarded to Petrofac Facilities Management International Limited

Posts: 227
Opinion: Buy
Posted: February 20, 2020

Petrofac awarded US$40 million project

Petrofac awarded US$40 million project by Sharjah National Oil Corporation

Petrofac’s Engineering & Production Services division (EPS) has been awarded an engineering, procurement, construction and commissioning (EPCC) contract by Sharjah National Oil Corporation (SNOC), worth around US$40 million, for a project in the United Arab Emirates.

The award demonstrates delivery against EPS’s strategy to secure smaller greenfield and brownfield EPC projects, utilising its footprint and infrastructure in existing core markets.

Mani Rajapathy, Managing Director, EPS East, commented:
“We are delighted to be awarded this contract by Sharjah National Oil Corporation, a longstanding Petrofac client that we have worked with successfully for many years. The award is important strategically as EPS looks to develop its track record in smaller greenfield and brownfield EPC projects. It also leverages Petrofac’s best-in-class expertise and experience in upstream gas and represents another win in one of our core markets of Sharjah and the UAE. We look forward to delivering a safe and successful project for SNOC.”

Petrofac has been present in the UAE since 1991. The Group employs around 3,000 people in country, many of whom are based at Petrofac’s major operational centre in Sharjah.

Posts: 227
Opinion: Buy
Posted: February 18, 2020



Petrofac Emirates has been awarded two contracts, together worth around US$1.65 billion with Abu Dhabi National Oil Company (ADNOC) in the United Arab Emirates.

The engineering, procurement (including novated long lead items), construction, transportation, offshore installation and commissioning contracts are for ADNOC's Dalma Gas Development Project. The work scope encompasses offshore packages at Arzanah island and surrounding offshore fields, located around 140 km off the north-west coast of the Emirate of Abu Dhabi.

The first package, valued at US$1.065 billion, is for gas processing facilities at Arzanah island. Under the terms of the 33-month lump-sum contract awarded to Petrofac, the scope of work includes inlet facilities with gas processing and compression units, power generation units, utilities and other associated infrastructure.

For the second package, valued at US$591 million, Petrofac is leading a Joint Venture with SapuraKencana HL Sdn. Bhd. Abu Dhabi. Under the terms of the 30-month lump-sum contract, the scope of work includes three new well-head platforms, removal and replacement of an existing topside, new pipelines, subsea umbilicals, composite and fibre optic cables.

The Dalma project is a key part of the Ghasha ultra-sour gas concession which is central to ADNOC's strategic objective of enabling gas self-sufficiency for the UAE.

George Salibi, Chief Operating Officer - Engineering & Construction, commented: "Petrofac has a strong track record in the UAE, with a presence here since 1991 and around 3,000 staff in country. We are fully committed to supporting continued and sustainable investment in Abu Dhabi's oil and gas industry through our strategic focus on maximising local delivery, and are pleased that our approach will generate substantial In-Country Value for the local economy. These latest contract awards build on our existing relationship with ADNOC Group companies and we look forward to delivering this mega project in a safe, successful and sustainable manner."

Established in the UAE in 1991, with operational centres in Abu Dhabi and Sharjah, Petrofac has executed 11 major EPC projects in-country to date. Recent projects include the Upper Zakum UZ750 project, Qusahwira Field Development Phase II, the Satah Al Razboot (SARB) Package 3, the contract for expansion of compression facilities at the Bab field and development of the Bab Habshan-1 project.


Posts: 227
Opinion: No Opinion
Posted: January 21, 2020

Unaoil trial

Started 20 January,2020.

For Mention - Case Started 01/11/2019 09:58
For Pre - Trial Review 16/12/2019 09:59
For Trial - Case Started 20/01/2020 10:34
For Trial - Case adjourned until 11:15 20/01/2020 10:53
For Trial - Resume 20/01/2020 12:03
For Trial - Case adjourned until 14:00 20/01/2020 12:27
For Trial - Legal Submissions 20/01/2020 15:05
Trial (Part Heard) - Resume 21/01/2020 10:13

Posts: 227
Opinion: Buy
Posted: December 31, 2019

Petrofac secures US$130 million in PDO awards

RNS Number : 3737Y
Petrofac Limited
31 December 2019

Press Release

31 December 2019


Petrofac announces today a new contract and the award of an additional scope of work with Petroleum Development Oman (PDO), with a combined value of approximately US$130 million.

The new contract award, under a 10-year Framework Agreement signed in 2017 with PDO, is an Engineering, Procurement and Construction Management (EPCM) services contract for the Mabrouk North East Development Project in Oman.

The full field development of Mabrouk North East field is planned to be executed in a phased approach. The 34-month project scope awarded involves the development of 16 gas producing wells and export of the production to the Saih Rawl Central Processing Plant. The project will be integrated with the Mabrouk North East Line Pipe Procurement Project, which was awarded to Petrofac in June 2019.

The other scope of work awarded is to provide further services for PDO's Yibal Khuff Project. This 20-month contract includes detailed Engineering, Procurement, and support for Construction and Commissioning of nine additional wells to improve overall plant production, and laying of gas pipeline from Yibal "A" to the main processing facility.

The Yibal Khuff Project, originally awarded to Petrofac in June 2015, is already in an advanced phase of construction and pre-commissioning, and the delivery of additional wells is to be synchronised for overall readiness.

Elie Lahoud, Group Managing Director, Engineering & Construction said: "This latest project award under the long-term framework agreement with PDO for Mabrouk North East, and additional scope of work for the Yibal Khuff Project, both further underpin our significant track record and commitment to delivering value in Oman. Our focus will remain on safe operations and maximising in-country value through the continued development of local workforce competence and strong supply chain partnerships."

Posts: 227
Opinion: Buy
Posted: December 19, 2019

I've Bought more PFC this morning.

I Bought a 5000 tranche at 379.524p and a 2943 tranche at 378.6985p

Posts: 227
Opinion: Buy
Posted: December 16, 2019

PFC - Project management services contract with BP

Petrofac, in a joint venture (JV) with the State Oil Company of the Republic of Azerbaijan (SOCAR), has secured a Project Management Services contract to support BP’s operations in Azerbaijan and Georgia.

The three-year contract will support both onshore and offshore activity for BP operated projects in the Caspian Sea area including Azeri-Chirag-Gunashli (ACG), Shah Deniz, Baku-Tbilisi-Ceyhan (BTC), South Caucasus Pipeline (SCP) and Western Route Export Pipeline (WREP).

Mani Rajapathy, Managing Director, Petrofac EPS East, commented:
"We continue to expand our service offering in the region with our key partner SOCAR. Petrofac has been active in Azerbaijan for over 15 years, providing skills development opportunities and services across the country’s oil and gas and petrochemical industries, so this award further underpins our international presence. We have worked with BP previously in the region and we are well positioned and committed to providing safe, reliable and efficient support in the delivery of their significant projects moving forwards in Azerbaijan and Georgia."

Khalik Mammadov Vice President, SOCAR, said:
"We have established a successful partnership with Petrofac that continues to flourish, the Joint Venture combines our respective experience, local knowledge and depth of capabilities. I am delighted with this latest award to support BP in the Caspian region, which has become one of the major oil and gas producing areas in the world."

Posts: 227
Opinion: Buy
Posted: December 12, 2019

Petrofac secures North Sea engineering frameworks

Petrofac has secured two new Framework Agreements (FAs) for the provision of Engineering, Procurement, Construction and Commissioning (EPCC) services.

The first, a three-year FA awarded by EnQuest as part of a multi-contractor framework, covers EPCC services across the Operator’s North Sea and onshore asset base.

The second EPCC FA, awarded by a Southern North Sea Operator, is for an initial two-year period with options to extend.

Petrofac has now secured seven such frameworks in the UK in 2019, demonstrating its continued focus on the growth of its brownfield projects business.

Future work undertaken through the frameworks will be supported by Petrofac’s Aberdeen office, where the company is actively investing in its engineering team and brownfield management system in support of its ongoing digitalisation strategy.

Nick Shorten, Managing Director for Petrofac’s Engineering and Production Services business in the Western Hemisphere said:
"In a mature basin like the UKCS, technical certainty and predictable delivery are critical success factors. The award of these FAs recognises our ability to combine our extensive engineering and construction expertise and offshore operations experience to drive repeatable project outcomes.

We very much look forward to building on the success of our existing relationship with EnQuest by safely supporting it to enhance recovery and extend field life in the North Sea."

Posts: 227
Opinion: Buy
Posted: December 11, 2019

Petrofac to collaborate on global wells programme

Petrofac’s Engineering and Production Services division (“EPS”) has signed a well management contract under Maersk Drilling’s master alliance agreement with Seapulse Ltd, a global exploration company.

Under its alliance with Seapulse, Maersk Drilling is responsible for providing fully integrated drilling services, including provision of drilling rigs and all related services for a global offshore oil and gas exploration programme. Petrofac has been appointed by Maersk to deliver well management services, including project and supply chain management support for shallow water and deepwater wells throughout the duration of the programme. Maersk has also appointed Halliburton to deliver integrated well services.

Two wells in the UK North Sea have previously been announced as part of the work scope which is expected to start drilling in the second half of 2020. A tailor-made process covering all phases in the end-to-end delivery of a well has been developed with the aim to maximise efficiency and remove waste through a novel approach to collaboration in the industry.

Nick Shorten, Managing Director for Petrofac Engineering and Production Services, Western Hemisphere, commented: “Building our well engineering business is a key element of our stated strategy to position EPS for growth in new markets. The aims of the Maersk Drilling and Seapulse alliance closely align with our own operating principles and we are delighted to be part of this exciting global supply chain collaboration. We very much look forward to working with all parties to deliver effective and technically robust campaigns.”

Morten Kelstrup, COO of Maersk Drilling, said: “We’re thrilled to join forces with Petrofac and Halliburton for this programme which breaks new ground in the industry by using a fully integrated service delivery model aimed at eliminating inefficiencies by aligning incentives and removing complexity across the entire value chain. Petrofac and Halliburton bring strong operational expertise and decades of experience in delivering and integrating oilfield services, which will further contribute to the ability to mitigate the operator cost risk associated with exploration drilling whilst we foster new ways of collaborating across the supply chain.”

Scott Aitken, CEO and co-founder of Seapulse, added: “We are very pleased to see the well delivery model that we have entered into with Maersk Drilling continue to mature with world-class partners. The Seapulse business model leverages Maersk Drilling’s partnerships’ technological and operational expertise to drill and test a statistically relevant exploration portfolio of a scale normally only associated with major oil companies.”

Posts: 227
Opinion: Buy
Posted: November 20, 2019

PFC Petrofac secures US$120 million in EPS awards

RNS Number : 9572T
Petrofac Limited
20 November 2019

Press Release

20 November 2019


Petrofac Limited ("Petrofac") announces today awards and contract extensions with a combined value of more than US$120 million, delivering against the Group's strategy to position Engineering & Production Services ("EPS") for growth by diversifying into new markets and geographies.

The awards and contract extensions consist of the following:

· EPS has secured its first small-scale Engineering, Procurement, Construction (EPC) contract in Malaysia. In consortium with partner Serba Dinamik, EPS has been awarded a contract by Asean Bintulu Fertiliser (ABF) Sdn Bhd, one of Malaysia's largest fertiliser plants, for its Third Boiler Project. The ABF plant located in the central region of Sarawak, which started commercial production in 1985, is a subsidiary of PETRONAS Chemicals Group Berhad. The work scope for the 30-month project includes basic and detailed engineering, procurement, construction and commissioning of an additional package boiler (165 tonnes per hour) to improve overall plant reliability and availability and meet total steam demands of 510 tph.

· EPS has also secured a new three-year Engineering, Procurement, Construction and Commissioning (EPCC) Framework Agreement (FA) with a North Sea operator. Future projects undertaken through the FA will be supported by Petrofac's Aberdeen office, where the company is actively growing its engineering team and investing in its brownfield management system in support of its digitalisation strategy.

· The new brownfield projects awards coincide with key North Sea contract extensions for EPS, including a two-year renewal of an existing seven-asset Operations and Maintenance contract, and the extension of EPS' existing Engineering Services contract with Chevron North Sea to June 2020.

John Pearson, Chief Operating Officer, Engineering and Production Services, said: "Continued diversification into new markets, such as brownfield projects, and new geographies, such as Malaysia, are key tenets of our growth strategy. We're also once again delighted that clients in the North Sea have exercised the option to extend our support for important Operations and Maintenance and Engineering Services contracts."


Posts: 227
Opinion: Buy
Posted: November 20, 2019

Petrofac Limited - PFC Acquisition of W&W Energy S

RNS Number : 9600T
Petrofac Limited
20 November 2019

Press Release

20 November 2019


Petrofac Limited ("Petrofac") announces it has signed a Sale and Purchase Agreement with the shareholders of W&W Energy Services ("W&W") to acquire an entry-level position in the US onshore Operations and Maintenance market.

W&W offers Maintenance, Repair & Overhaul and Pipeline tie-in services in the Permian Basin, the world's largest producing basin. This bolt-on acquisition is in line with Petrofac's stated strategy to position Engineering & Production Services ("EPS") for growth by diversifying into new markets and geographies.

Transaction consideration comprises firm and deferred cash payments, aggregating to a total consideration of 4.5x average W&W EBITDA for the period 2019-21. Petrofac will pay an initial cash consideration of US$22 million on completion. Deferred true-up and earn-out payments will be paid based on W&W's financial performance over the three-year period ended 31 December 2021.

John Pearson, Chief Operating Officer, Engineering and Production Services, said: "This bolt-on provides a platform to grow EPS using a low-risk reimbursable services model in the US onshore services market. As production volumes, infrastructure support requirements and the activity of major operators rise in the Permian, we are confident that the combination of W&W's footprint and strong local brand with Petrofac's Engineering and Modifications capability and global track record can unlock growth."


1) W&W's unaudited EBITDA for the financial year ended 31 December 2018 was US$6.6 million.

2) At completion, W&W's net debt was US$2.8 million.


Posts: 227
Opinion: No Opinion
Posted: October 7, 2019

PFC Contract with JOG

Greater Buchan Area (GBA) Development Contractor Appointments

Jersey Oil and Gas plc is pleased to announce the award of contracts to Rockflow Resources Ltd ("Rockflow") and Petrofac Facilities Management Limited ("Petrofac").

Accordingly, Rockflow will provide subsurface evaluation support and Petrofac will provide facilities and well support for the concept selection phase of the GBA development project.

JOG has developed a close working relationship with both Rockflow and Petrofac during the last two years and both companies were instrumental in supporting JOG in its successful application in the UKCS 31st Supplementary Offshore Licensing Round that resulted in the award of the GBA development opportunity.

Andrew Benitz, CEO of Jersey Oil & Gas, commented:

"I am delighted to announce the award of contracts to both Rockflow and Petrofac. We look forward to building on our valued relationship with both companies as we progress through the critical concept selection phases of the Greater Buchan Area development project".

Posts: 227
Opinion: Buy
Posted: September 19, 2019

PFC Sells remaining 51% of Mexican Operations

Press Release

19 September 2019


Petrofac Limited ("Petrofac") announces that it has today signed an agreement to sell its remaining 51% interest in its operations in Mexico(1)(2), including Santuario, Magallanes and Arenque, to Perenco (Oil & Gas) International Limited ("Perenco"). The terms of the transaction are substantially the same as the sale of a 49% non-controlling interest to Perenco in October 2018. The transaction is subject to regulatory approval and is expected to complete in 2020.

Under the terms of the agreement, Petrofac will receive an initial US$37.5 million upon signing and a further minimum payment of US$82.5 million upon completion. The total consideration of up to US$276 million comprises a fixed amount and a series of contingent amounts that depend upon future milestones, including field development, commercial, service contract transition and fiscal terms, and is subject to the level of achievement of the milestones above. Proceeds from the sale will be used to reduce gross debt.

Petrofac's Group Chief Executive, Ayman Asfari said: "This disposal reinforces our position as a capital-light business and represents further progress in our stated strategy to enhance returns. We are proud of the work we have done since 2011 to enhance production from our operations in Mexico and, in particular, of the country's first ever contract migration, which we achieved for the Santuario field in partnership with Pemex and the Mexican authorities."

Perenco CEO, Mr Benoit de la Fouchardière, said: "The signing of this agreement to acquire the remaining shares in Petrofac's Mexico operations marks another strategic move for Perenco, which will allow us to accelerate the deployment of our expertise in relation to the Santuario, Magallanes and Arenque assets. We believe that our unique know-how will significantly enhance the production and value of these mature fields and allow us to address all the associated challenges."

"Through our daily performance and the full commitment and support of the Perenco team we will demonstrate to the State company Pemex that we are the clear partner of choice for the future of these types of mature assets."


1) This transaction will be effected by the sale of Petrofac's remaining 51% interest in Petrofac Netherlands Holding B.V., which indirectly holds the Santuario Production Sharing Contract, the Magallanes Production Enhancement Contract (a tariff-per-barrel-based service contract) and the Arenque Production Enhancement Contract.

2) The gross assets being disposed of had a carrying amount of US$666 million at 31 December 2018. The net assets being disposed of had a carrying amount of US$548 million at 31 December 2018. Related non-controlling interest as at 31 December 2018 stood at $266 million. The assets being disposed of made an underlying business performance profit of US$2 million for the year ended 31 December 2018 (51% share equals approximately US$1 million).

3) The uncertainty surrounding the Mexican Energy Reform programme is expected to result in a small non-cash impairment charge. An impairment charge will take into account, inter alia, management's assessment of the fair value of contingent consideration, which will include an assessment of future Production Enhancement Contract transitions.


Posts: 227
Opinion: Buy
Posted: September 18, 2019

Petrofac secures contract for Al Dhafra Petroleum

Petrofac secures maintenance services contract for ADNOC's Al Dhafra Petroleum.

Petrofac’s Engineering & Production Services (EPS) division has been awarded a contract to provide managed maintenance services for ADNOC’s Al Dhafra Petroleum to support its operations at Haliba field, located onshore along the south-east border of Abu Dhabi.

Al Dhafra Petroleum is a joint venture company between ADNOC and the Korea National Oil Corporation and GSE Energy. The company explores and develops its concession area as it evaluates the commercial value of several promising fields through an agile operating model. The company recently achieved first oil production at Haliba field on 1 June 2019.

Mani Rajapathy, Managing Director, Petrofac EPS East, said: “We are delighted to be supporting Al Dhafra Petroleum, as production from its Haliba field is an integral part of ADNOC’s strategy to unlock and maximise value from all of Abu Dhabi’s oil and gas resources to create long-term and sustainable returns. This is our first contract to specifically undertake maintenance activities for a full asset in Abu Dhabi, setting us up well to support other key projects in the UAE. Our team look forward to playing their role in maintaining the facilities, adding value through the delivery of services in a safe and highly efficient manner.”

Petrofac first established a presence in the UAE in 1991 and has developed a large workforce supporting both regional and international projects, with a commitment to deliver In-Country Value. Emiratisation is a key business priority and Petrofac is actively promoting current career opportunities.

Posts: 227
Opinion: Buy
Posted: August 28, 2019

Petrofac Results for the six months ended 30 June

Solid operational performance in all our businesses
Business performance net profit (1)(2) of US$154 million
Reported net profit (2) of US$139 million
New order intake (3) of US$2.0 billion year to date
Net cash of US$69 million
Interim dividend of 12.7 US cents per share


The Board has declared an interim dividend of 12.7 US cents per share (2018: 12.7 US cents). The interim dividend will be paid on 18 October 2019 to eligible shareholders on the register at 20 September 2019 (the 'record date'). Shareholders who have not elected to receive dividends in US dollars will receive a sterling equivalent. Shareholders can elect by close of business on the record date to change their dividend currency election.

Full RNS can be read here,

Posts: 227
Opinion: Strong Buy
Posted: June 26, 2019

Petrofac surges on reports of dropped SFO probe

(Sharecast News) - Petrofac shares surged on Wednesday following reports that the Serious Fraud Office has abandoned a criminal investigation into three businessmen who were accused of paying brides in the energy industry.

The SFO had been probing claims that Unaoil - a Monaco-based consultancy that worked with Petrofac, primarily in Kazakhstan between 2002 and 2009 - had paid multimillion pound brides to land contracts in the oil and gas industry.

But The Guardian cited sources earlier as saying that the SFO has dropped the investigation into the trio.

Compliance industry newsletter MLex was the first to report the news, saying on Tuesday that the probe had been halted after three years.

The SFO launched an investigation into Petrofac in May 2017 as part of a wider probe into Unaoil. In February 2019, David Lufkin, Petrofac's former global head of sales, pleaded guilty to 11 counts of bribery linked to contracts worth more than $730m in Iraq and $3.5bn in Saudi Arabia.

SFO spokesman Adam Lilley said the Unaoil investigation "remains active and is ongoing".

"We do not comment on ongoing investigations," he said.

At 1540 BST, the shares were up 14.5% at 463.80p.

Posts: 227
Opinion: Strong Buy
Posted: June 26, 2019

SFO drops investigation into Unaoil

SFO drops investigation into trio accused of energy industry bribes

Ata Ahsani and his sons formerly owned and controlled Monaco-based firm Unaoil

Prosecutors have dropped a criminal investigation into three businessmen who had been accused of paying huge bribes in the energy industry, sources with knowledge of the inquiry have said.

The Serious Fraud Office had been investigating claims that Unaoil, a firm formerly owned and controlled by its chairman Ata Ahsani and his sons Cyrus and Saman, paid multimillion-pound bribes to land contracts in the oil and gas industry.

On Tuesday, the SFO declined to say why its investigation into the trio had been dropped.

The termination of the investigation comes as the SFO faces renewed criticism for closing corruption investigations into large multinational firms and its failure to convict business executives.

Last year, the SFO charged four Unaoil employees with conspiring to make corrupt payments to secure contracts in Iraq. The SFO’s prosecution of these employees continues.

The SFO issued summonses against Unaoil as a corporate body over allegations of conspiracy to give corrupt payments. It is unclear if these summonses are still in operation.

The investigation by the SFO into alleged bribery and money laundering by Unaoil and its employees opened in 2016 after a leak of thousands of the firm’s emails to journalists at Australia’s Fairfax media. Police in Monaco raided Unaoil’s headquarters at the SFO’s request.

The first charges from the investigation – against the four employees – came in 2017. Their trial is scheduled to begin in January 2020.

The halting of the Unaoil investigation was first reported by compliance industry newsletter MLex on Tuesday. The SFO said it could not comment on an ongoing investigation.

The Ahsani family and Unaoil declined to comment. Unaoil has consistently denied involvement in bribery, calling the allegations “malicious and damaging”.

Last year, the SFO said it was seeking the extradition of Saman Ahsani, the 43-year-old commercial director of Unaoil, from his home in Monaco. He had not been charged with any offence and it is understood that a warrant for his extradition has been withdrawn.

In February, the SFO was criticised by anti-corruption campaigners after it closed its investigation into alleged bribery by Rolls-Royce employees. On the same day, it announced that it was closing down another investigation alleged corruption by Britain’s biggest drug-maker, GSK.

Posts: 227
Opinion: Buy
Posted: June 25, 2019

PFC Trading update

RNS Number : 2678D
Petrofac Limited
25 June 2019


Petrofac issues the following pre-close trading update ahead of the announcement of its results for the six months ending 30 June 2019 on 28 August 2019.

· Trading in line with prior guidance

· New order intake (1) of US$1.7 billion in the year to date

· Net debt (2) expected to be around US$0.1 billion at 30 June 2019

Ayman Asfari, Petrofac's Group Chief Executive, commented:

"We are trading in line with our prior guidance reflecting solid operational performance across the business.

"We continue to maintain excellent client relationships in all of our markets, although new order intake in the year to date reflects our recent challenges in Saudi Arabia and Iraq. Looking forward, the Group has a busy tendering pipeline in other markets with around US$15 billion of bid opportunities due for award in the second half of the year.

"We are making good progress delivering our strategic objectives. We continue to target best-in-class delivery for our clients and are improving our competitiveness by reducing costs, driving digitalisation, increasing local content and investing in talent. Furthermore, we are well positioned in the second half with good revenue visibility, a strong balance sheet and high levels of tendering activity."

Engineering & Construction (E&C)

Overall, Engineering & Construction results are forecast to be in line with management guidance, with revenues for the full year expected to be around US$4.5 billion and net margins at the low end of guidance.

We have continued to make steady progress delivering our portfolio of projects. In Malaysia, the RAPID project is substantially complete with all units ready for the introduction of gas. On the Upper Zakum Field Development in the UAE, commissioning work at the central and west islands is at an advanced stage. In Saudi Arabia, the Jazan South tank farm is mechanically complete, whilst the Jazan North tank farm and Fadhili projects are nearing mechanical completion. In Kuwait, we are focused on the delivery of priority units on the KNPC Clean Fuels project and water has been introduced into the Lower Fars Heavy Oil plant. We are also preparing for the introduction of power at the BorWin 3 offshore grid connection project in the North Sea. Meanwhile, our engineering, procurement and construction management (EPCm) projects are progressing well: the Al Taweelah Alumina Refinery recently started up, and both Yibal Khuff and the Rabab Harweel Integrated Project are nearing completion.

We have secured new orders worth US$1.6 billion in E&C in the year to date (1H 2018: US$1.6 billion(3)), including a lump-sum engineering, procurement and construction (EPC) contract for the Ain Tsila Development Project in Algeria and the Mabrouk Project in Oman.

Engineering & Production Services (EPS)

Engineering & Production Services is performing in line with expectations, with growth in Projects offsetting lower activity from Operations.

We have secured US$0.1 billion of awards and extensions in the year to date (1H 2018: US$0.5 billion(3)), including new awards and contract extensions in the UK North Sea, Oman, UAE and Iraq.

Integrated Energy Services (IES)

Net production is expected to be approximately 2.1 million barrels of oil equivalent (mmboe) for the first half of the year (1H 2018: 3.1 mmboe), in line with expectations and reflecting divestments in the second half of 2018. The average realised oil price (net of royalties) for the first half is expected to be approximately US$69 per barrel of oil equivalent (1H 2018: US$56/boe), reflecting higher realised prices and production mix.

Financial position

Group backlog stood at US$8.9 billion at 31 May 2019:

31 May 2019

31 December 2018 (3)

US$ billion

US$ billion

Engineering & Construction



Engineering & Production Services






Net debt (2) is expected to be around US$0.1 billion at 30 June 2019 (31 December 2018: US$90 million net cash), reflecting the reversal of temporary favourable working capital movements at the end of 2018, the phasing of tax and dividend payments as well as the purchase of treasury shares. We continue to review options for our remaining non-core assets, consistent with our strategy to enhance returns.

Conference call

Alastair Cochran, Chief Financial Officer, will host a conference call for analysts and investors at 8am today.


(1) New order intake comprises new contract awards and extensions, net variation orders and the rolling increment attributable to EPS contracts which extend beyond five years.

(2) Net debt comprises interest-bearing loans and borrowings less cash and short-term deposits (i.e. excludes IFRS 16 lease liabilities).

(3) On 1 January 2019, the EPCm business was reclassified from the EPS division to the E&C division. The EPCm business is presented within the E&C division in prior period comparative figures.


Posts: 227
Opinion: Buy
Posted: June 25, 2019

Mohammed Ghazi Al-Mutairi joins Petrofac

Mohammed Ghazi Al-Mutairi joins Petrofac as Country Chair - Kuwait

Petrofac has appointed Mohammed Ghazi Al-Mutairi as Country Chair, Kuwait, recognising the multiple substantial projects and activities the company has in-country and the strategic importance of Kuwait to the Group.

Mohammed Ghazi Al-MutairiMr Al-Mutairi, who holds a BSc in Chemical Engineering from Kuwait University, brings over 32 years’ experience in the Kuwait oil and gas industry. He has significant leadership experience, having served as Chairman and Board member of a number of major companies in the sector, most recently as the Chief Executive Officer of Kuwait National Petroleum Company (KNPC), and was Chairman of the Gulf Downstream Association.

This appointment is aligned to the continued role Petrofac has in the development of Kuwait’s oil and gas infrastructure and increased demand the company sees helping clients expand both their upstream production and their downstream operations.

In his role as ambassador in-country, Mr Al-Mutairi will represent the Petrofac Group, working closely with the various parties across the entire Petrofac portfolio, in the ongoing delivery and development of the company’s full-service capability offering and operations in Kuwait.

Roberto Bertocco, Chief Commercial Officer, said: “We are delighted to welcome Mohammed to Petrofac. He has played an important role in shaping Kuwait’s downstream sector, leading the implementation of some of the region’s most complex energy projects. This is a key market where our continued focus is on investing in-country and building capabilities for the future to ensure we’re part of the fabric of Kuwait for many years to come.”

Petrofac has been supporting Kuwait’s oil and gas industry since the 1980s with a strong track record in delivery, excellent safety record and focus on enhancing in-country value by supporting local goods and services. Substantial ongoing projects include KNPC’s Clean Fuels Project, partnering with Samsung and CB&I to upgrade the Mina Abdullah refinery, creating a truly world-class facility which operates to high environmental standards and brings production to 454,000 barrels a day. EPC contracts with Kuwait Oil Company include Gathering Centre 32 (GC32) and the Lower Fars heavy oil Project, where operations and maintenance services are also being provided.