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Petrofac lands ‘sizeable decommissioning’ contract offshore Gulf of Mexico

© Supplied by PetrofacPetrofac NEO Energy

Energy services giant Petrofac (LON: PFC) and Promethean Decommissioning Company (PDC) have formed an alliance to decommission three fields offshore Gulf of Mexico.

The South Pass 60, South Pass 6 and East Breaks 165 fields and assets include nine platforms, 200 wells and 32 pipeline segments.

PDC takes on the role of decommissioning operator and is responsible for fulfilling the field order received from the US Department of the Interior’s Bureau of Safety and Environmental Enforcement in February.

Petrofac has been picked by PDC to be the decommissioning services provider – the contract is valued at around $200m million.

The Alliance has selected Danos, a leading Gulf of Mexico offshore services provider for over 75 years, to support field operations and the decommissioning programme.

The project will be led from Houston, with the integrated alliance team using the latest digital software, including Petrofac’s proprietary project management tool Turus, to deliver the project.

Nick Shorten, chief operating officer for Petrofac’s Asset Solutions business, said: “This significant contract recognises our industry-leading decommissioning programme management experience and our unique in-house capability to manage all well and asset decommissioning phases.

“It’s been more than four decades since Petrofac first began in Texas and in that time we have expanded our offshore capabilities across the globe. This expertise will be applied to the project, complemented by our already strong onshore presence in Texas.

“We look forward to working with PDC as part of our Alliance to deliver a new approach to large-scale decommissioning programmes in the Gulf of Mexico.”

Aditya Singh, founder and chief executive, Promethean Energy Corporation said: “Promethean is an oil and gas operator with an integrated approach to the development, production, and decommissioning of mature resources.

“We are pleased to offer our new outsourced ‘Decommissioning Operator’ service to the industry and to commence activity on this major decommissioning project. We are fully aligned with all our stakeholders to improve environmental performance through the safe and efficient decommissioning of end-of-life assets.

“We accomplish this with a dedicated, fit-for-purpose entity, PDC, via an integrated operating service model and focused programme management. I am particularly pleased that the PDC and Petrofac Alliance has been selected, leveraging the complementary strengths of both companies.”

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