Oman awards Petrofac service contract for sour gas project

refinery-John R Perry pixabayOil and gas service provider Petrofac has been awarded an engineering and procurement contract by Petroleum Development Oman (PDO) for Yibal Khuff sour gas project, located approximately 350 km southwest of Muscat in Oman

Under the terms of the four-and-a-half year contract, Petrofac will provide reimbursable detailed engineering, and construction and commissioning management support services and procurement on an incentivised pass-through basis. This would extend throughout construction and during start-up of the integrated oil and sour gas facility.

The total contract value is expected to be around US$900mn with around one quarter of the revenues relating to professional services (engineering, construction and commissioning management).

According to the company, the development of the field will add to PDO’s future oil production whilst the associated gas will be utilised for power generation and enhanced oil recovery developments.

Craig Muir, managing director for Petrofac’s Engineering & Consulting Services business, said, “This contract builds on the Rabab Harweel Integrated Project, which we are already executing alongside PDO and represents a further milestone in the development of our EPC delivery strategy.

“Furthermore, it reinforces our presence in Oman where we have a number of ongoing projects and a local engineering office, and where this project will further complement our agenda for increasing in country value.”

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