Petrofac operations not impacted by Iraq turmoil

Guy Bentley
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(Source: Getty)

Oil and gas services firm Petrofac has said that its operations in Iraq, which represents less than five per cent of expected revenues for this year, have not been significantly impacted by the recent wave of violence sweeping many parts of the country.

The company's operations are mainly concentrated in the south and east of Baghdad rather than the north where the majority of fighting has taken place.

The FTSE 100 company said in its trading update that good progress was being made across the EPC portfolio, with good operational performance from ECOM.

Ayman Asfari, Petrofac's Group chief executive, commented:

We have had a good start to the year in ECOM, delivering good operational performance, and securing more than $6bn of order intake. The Group's backlog stands at record levels, giving us good revenue visibility for the rest of this year and beyond.

At the end of May, Petrofac won a $630m (£377m) contract to maintain EnQuest’s assets in the North Sea.

Under the deal, the FTSE 100 company will provide operations and maintenance services to energy explorer EnQuest on the Thistle, Heather and Northern Producer projects, as well as for a floating vessel which will be used on the Alma/Galia field. The contract supersedes an initial five-year contract awarded to Petrofac in 2013.

“This is testament both to the continued strength of our relationship with EnQuest and to our understanding of these assets,” said Bill Dunnett, managing director of Petrofac’s offshore projects and operations.

Earlier that month the company took a hit after announcing its net profit for this year will fall by as much as 11 per cent.