Petrofac share price rises as it beefs up its presence in Iraq with $100m in contracts

Courtney Goldsmith
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Iraq Signs Contracts With Foreign Oil Companies
Petrofac's shares tumbled in May following a probe by the Serious Fraud Office (Source: Getty)

Shares in Petrofac rose more than four per cent today after the company announced it had signed contracts worth more than $100m (£77m) in Iraq.

The oil and gas services company has been building up a presence in the country since 2010, and the new and extended contracts for construction management, engineering, commissioning and start-up services give the group good visibility for future work in the region as well as securing around 250 new jobs.

The announcement builds upon $70m in new awards in Iraq announced in April.

Mani Rajapathy, managing director of engineering and production services in the east, said:

Iraq is an important market for us and, as evidenced by the number of awards we've secured there this year, we've consistently proven our delivery and execution capability on behalf of our clients.

As we move forward, our teams will remain focused on ensuring services are delivered in alignment with our clients' expectations to enable them to maximise value from their oil and gas assets.

The company's stock is also likely benefiting from higher oil prices. Brent crude oil jumped above $50 per barrel yesterday and has remained stable today.

Petrofac's performance in the first half of the year was hit by weak oil prices.

The company's shares have only risen slightly since plunging in May following the Serious Fraud Office's investigation into suspected bribery, corruption, and money laundering.

The firm's shares dropped to a low not seen in years in the wake of the news and Bentham Ventures said it was contemplating funding legal action against Petrofac on behalf of shareholders after shares dropped "in excess of 50 per cent" over May.

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