Petrofac shares touch 3-month high on $1.2bn BP contract win
PETROFAC’S shares surged to a three-month high yesterday after the oil and gas services provider said it had secured a $1.2bn (£780m) contract with BP.
FTSE 100-listed Petrofac said it would be working on the Khazzan gas project in Oman for BP – the largest new upstream project in the region.
The scope of the work will include engineering and procurement as well as construction of the central processing facility at the Khazzan field.
It expects to complete the project in 2017.
Shares in Petrofac jumped four per cent in intra-day trading to their highest level since 15 November, but finally closed 2.3 per cent higher at 1,360p.
“This contract is very much Petrofac’s bread-and-butter, an onshore gas processing plant in the Middle East,” Investec said in a note yesterday.
Subramanian Sarma, managing director of Petrofac’s onshore engineering & construction business, said that this latest contract win had come after it had completed several large projects for BP. He added that Petrofac was “delighted” to have secured the deal.
The new BP contract follows Petrofac’s announcement in November that it had won the contract for the $2.1bn Sohar refinery improvement project from Oman Oil Refineries and Petroleum Industries.