2009 will be "another year of strong growth"

Ok, yesterday, another stonking contract win......

http://www.investegate.co.uk/Article.aspx?id=200907160721297663V

Petrofac, the international oil & gas services provider can confirm that its 50% owned Joint Venture, Petrofac Emirates, in partnership with GS E&C, has received a letter of award from GASCO for a contract worth approximately US$2.1 billion with a value to Petrofac Emirates of around US$1 billion.

 

And today a bit of news breaking on the wires but not actually RNS'd by PFC. Many do not realise that PFC is also building a nice little production company too. More plans to expand this revealed today.......

http://www.dowjones.de/site/2009/07/petrofac-buys-floating-oil-gas-production-facility.html

Oil and gas services company Petrofac (PFC.LN) Friday said it has bought a floating oil and gas production facility called AH001 from Hess Ltd. and Endeavour Energy U.K. Ltd.

The vessel can process 70,000 barrels of oil a day, and 42.5 million cubic feet a day of gas and has been used most recently at the Ivanhoe and Rob Roy fields in the U.K. North Sea, also processing oil and gas from the Renee and Rubie fields.
Petrofac couldn't comment on the price paid for the unit. A spokeswoman for the company said the unit would be a suitable production facility for a number of different developments, and Petrofac is "currently looking for an appropriate opportunity".

This could be outside the U.K., she said. AH001 will take around six months to modify ready for deployment.

It is Petrofac's first energy infrastructure investment, but the company already has experience with floating production vessels at the Don Area development in the U.K. and at the Cendor field in Malaysia.

Statement says for a yet to be identified opportunity - wonder what field they will develop - or buy to develop? Another angle could be a "rental" agreement where they get a share of a field for providing the production facility. They already know how lucrative this can be as they are leasing the Northern Producer facility to produce the Don fields - except this time the contract could be on the other foot for the now 100% owned AH001 :-)

http://www.investegate.co.uk/Article.aspx?id=200811200706345492I

Both Don Southwest and West Don Fields are located in the northern North Sea, approximately 150 km northeast of the Shetland Islands and 12 km north of the Thistle Field in a water depth of approximately 500ft. The Northern Producer floating production facility, which recently finished an assignment on the Galley Field, will be utilised for processing fluids from both fields ahead of export. It has been secured for field life under a lease arrangement, with lease cost based on an oil throughput tariff dependent on Brent oil prices. Oil export from the Northern Producer will be by offshore tanker loading initially and then by subsea tie-back for export service via the Thistle platform.

In reply to oilretire (post #1)

More on the Abu Dhabi contract in posts 20 & 21 on the UAE & Gulf O &  G thread

http://www.stockopedia.co.uk/forum/view/28763/uae-and-arabian-gulf-o-g

PFC are also undertaking the management of all of Dubai's offshore fields.

I'm not aware of any other company that is so widely dispersed through exploration acreage, production, management of fields for others and them the services side. Strong both in the North Sea and in the Arabian Gulf,  Are they unique in this?

I can't see this disparate collection of interests (all seemingly fairly successful) being of interest to a normal E & P predator, but it might be of interest to an NOC or SWF - particularly if such a body had the intention of then hiving off various bits and pieces. Oil services and fabrication in the Gulf fand the North sea production arm to an E & P entity?

Man Siarad

Very strong start to the day, up ~10%

Any rumours?

UBS upgrades its rating to 'buy' from 'neutral' and ups its target price on the group to 1,000p from 610p. As it's asking price is currently 823p I think I could placy that sort of catch-up
. 

PFC announced today that they are de-merging their North Sea E&P assets and combining these with Lundin's NS assets to make a new NS focused E&P called EnQuest.

The PFC release http://www.investegate.co.uk/Article.aspx?id=20100304070000P685B

The EnQuest intention to float RNS http://www.investegate.co.uk/Article.aspx?id=201003040701080750I

EnQuest will be main market listed, which is good news for anyone holding PFC in their ISA.

PFC will keep their 'rest of the world' E&P portfolio

Good progress continues to be made in relation to Energy Developments' existing
portfolio of operational assets, which include Chergui (Tunisia), Cendor
(Malaysia), Ohanet (Algeria) and the Krygz Petroleum Petrofac refinery (Krygz
Republic).

Looks like PFC will keep the AH001 (see post No 1 above), now renamed as FPF1 as it gets a mention in this section..... 

6. Petrofac following the Demerger
 

As for the new co........

The Group's assets will comprise the UKCS assets of Petrofac Limited ("Petrofac") and Lundin Petroleum AB ("Lundin"), including the Thistle, Deveron, Heather, Broom, West Don and Don Southwest fields. Gaffney, Cline & Associates ("GCA") has certified that, as at 1 January 2010, the Group's assets had total net proved plus probable oil and NGL reserves of 80.5 MMBbl.  As at 1 January 2010, GCA has also certified net oil and gas best estimate (2C) contingent resources for individual assets.  The aggregate of the oil 2C contingent resources on an unrisked basis is 67.5 MMBbl, and of the gas 2C contingent resources is 30.6 Bcf (see Note 1 in Notes to this Announcement).

·      The Group will have interests in 16 production licences covering 26 blocks or part blocks in the UKCS, of which 15 licences will be operated by the Group.

·      The Group intends to deliver sustainable growth in shareholder value by focusing on exploiting its existing reserves, commercialising and developing discoveries, converting its significant contingent resources into reserves and pursuing selective acquisitions.

Tables 1 to 5 of the EnQuest release give all sorts of metrics for reserves & NPV's - useful read across values for other NS companies and assets??

I wonder if this will trigger a loss of standard PFC contacts as operators consider them competition and not a service company?

Wood group and Schlumberger have avoided owning E&P for this very reason.

FH

In reply to flyinghorse (post #6)

IMO it won't make a difference at all, PFC have had an 'E&P' division in the form of Energy Developments for a few years now and will continue to do so. This deal only affects the NS assets.

You never know, PFC may continue to hold the operations & maint contracts for the EnQuest assets??

Presentation on the website now

http://www.petrofac.com/Presentations.html

http://www.petrofac.com/Petrofac_Proposed_Demerger_of_UKCS_Assets_4.3.10_Nu7gL.pdf.file

In reply to oilretire (post#7), I wonder whether Petrofac are now likely to re-focus attention on their core business, in particular on theirMiddle Eastern / Central Asian assets.

Their UAE interests are fairly significant - managing Dubai's offshore fields and the service/supply interests, as well as the relatively recently-announced joint venture with Abu Dhabi's Mubadala announced in November 2008, which picked up a US $ 2.1 billion contract for Abu Dhabi's GASCO in July last year.

http://www.investegate.co.uk/Article.aspx?id=200907160721297663V

Their UAE arm obtained a major contract in Turkmenistan for the South Yoloten gas field later last year:
http://www.investegate.co.uk/Article.aspx?id=20091230071520P7D3A

In November last year, they sent up a JV with Saudi Arabia's Zamil Group, which should by now be in operation:

http://www.investegate.co.uk/Article.aspx?id=200911240700059578C

They extend well beyond the Middle East and Central Asia, too - last March saw this US $ 2.2 billion EPCcontract being awarded in Algeria.

http://www.investegate.co.uk/Article.aspx?id=200903111203086867O

And there's not much sign that having had their NS oil-producing assets has done them much harm there in terms of their core business - last November, they won a contract to manage all of BP's assets in the North Sea.

http://www.investegate.co.uk/Article.aspx?id=200911161200015625C

I can't help feeling that the North Sea E & P assets may well have been a bit of a distraction. Good to hive them off, in partnership with Lundin, creating something that would be a coherent target for any potential acquisitor in the future, while, as you say, Petrofac may well hang on to the operations and maintenance  contracts for EnQuest too.

Man Siarad