Petrofac has secured a long-term Framework Agreement (FA) with Petroleum Development Oman (PDO) for the provision of engineering, procurement and construction management (EP+Cm) support services for major oil and gas projects
The Agreement, which is for 10 years with an additional five-year option, builds upon a three-year programme of EP+Cm support contract delivery Petrofac has undertaken on behalf of PDO. Future projects undertaken through the FA will be supported by Petrofac’s Muscat office for technical delivery and to ensure sustainable in-country value is generated.
Craig Muir, group managing director, Engineering and Production Services, Petrofac said, “This is a landmark agreement between our two companies and marks a new level of collaboration between PDO and Petrofac. It builds upon a long-standing relationship which spans more than two decades and encompasses a significant number of projects undertaken in Oman on both a lump-sum and reimbursable basis. Our priority will be to deliver quality oil and gas facilities that are technically robust, with an absolute focus on safety and in-country value.”
Raoul Restucci, managing director, PDO said, “This long-term agreement with Petrofac reflects our continuing commitment to the safe and responsible development of hydrocarbons in the Sultanate and to drive maximum in-country value from our operations. PDO seeks a high level of performance and commitment from our supply chain and this agreement reaffirms our determination to work with key partners in our supply chain to deliver real value for Oman and our shareholders. It is our firm belief the value that we have already created working closely together can be sustained well into the future and we look forward to extending our partnering with Petrofac in this next phase of our relationship.”
Petrofac is currently undertaking two projects, on behalf of PDO, through an EP+Cm delivery model. This includes the US$1.2 bn award inMarch 2014for the Rabab Harweel Integrated Project (RHIP) and the US$0.9 bn award inJune 2015for the Yibal Khuff project.
News of the agreement boosted Petrofac's share price, which has recently suffered as a result of the UK Serious Fraud Office (SFO) investigation into Petrofac's dealings with Monaco-based Unaoil, and the related suspension of its COO Marwan Chedid.
