PETROFAC, the international oil and gas facility service provider, has announced what could be its biggest deal, worth up to £2.5billion.
It has been engaged by Turkmengas, the state-owned national gas company of Turkmenistan, to provide services in relation to the development of the South Yoloten gas field.
The first phase of the contract, signed with Petrofac International (UAE) and valued at about £63million, will involve Petrofac completing a front-end engineering and design study for the project plus initial planning and set-up studies.
The contract also contemplates moving into a second phase which will include the engineering, procurement and commissioning work for a 350billion cubic feet per annum (cfpa) gas-processing facility plus infrastructure and pipelines for the entire 700billion cfpa development.
The eventual scope for the South Yoloten development is likely to include well facilities, gathering systems, gas processing and sweetening, sulphur handling, storage and export and condensate processing, storage and export facilities. Maroun Semaan, group chief operating officer, said: “This is Petrofac’s first project award in Turkmenistan although we have been building our relations with Turkmengas for some time. The development of the South Yoloten field is a critical part of Turkmenistan’s plans to exploit its very significant hydrocarbon resources.”
Andrew Dobbing, of broker Cazenove, said that the deal could potentially be worth as much as £2.5billion to Petrofac, making it the group’s largest contract yet.