Petrofac Secures $250 Million Duty Holder Contract from Government of Sharjah

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Researched by Industrial Info Resources (Sugar Land, Texas)--Petrofac Limited (LSE:PFC) (Jersey, United Kingdom), a facilities solution provider to the global oil and gas industry, has secured a $250 million Duty Holder contract from the government of Sharjah to take over the operational and facilities management of the Sajaa Gas Processing Plant, along with its related assets. The scope of the five-year contract involves the full range of facilities management and includes project management; plant operations and engineering; reservoir management; drilling; and well services. The contract was secured by Petrofac's Offshore Engineering & Operations (OE&O) business unit, through a competitive open bidding process.

The Sajaa plant is about 30 kilometers from Sharjah and is part of the larger Sharjah gas and associated liquids concession. The Sharjah government, through the Sharjah Petroleum Council (SPC) (Sharjah, United Arab Emirates), has a participating stake of 60% in the concession. BP plc (NYSE:BP) (London, England) holds the remaining 40% stake and runs all the petroleum operations under the concession, including the Sajaa gas plant, along with its storage, pipelines, jetty, condensate export terminal, and the liquefied petroleum gas (LPG) facilities of the Sharjah LPG Company (Sharjah) on the coast of Al Hamriyah.

Before the end of this year, Petrofac will have taken complete control of the operations, while the Sharjah government will become the concession operator. About 130 personnel that are currently part of the operating team will transfer to Petrofac during the transition. The concession will expire in late 2013, and BP and the Sharjah government are working on implementing a smooth transition of operations from BP to the government.

"Appointing Petrofac before the end of concession allows for a smooth management of change to be carried out while BP is still present as an equity holder in the concession," said Deputy Chairman Sheikh Sultan bin Ahmed bin Sultan Al-Qassimi of the SPC.

"Petrofac's track record demonstrates that it has the capability to ensure the uninterrupted, safe and reliable operation of the facilities, while we transfer operatorship to the government of Sharjah prior to the end of concession in 2013," said President and General Manager Abdulkarim Almazmi of BP Sharjah.

Operational since 1980, the Sajaa gas plant has an inlet capacity of about 700 million cubic feet per day and produces sales gas, LPG and condensate from Sharjah's Kahaif, Moveyeid and Sajaa onshore gas and condensate fields. The Sajaa operations area was developed by Amoco Sharjah Oil Company (Sharjah) in the 1980s, before the company became a part of BP in 1999.

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