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Neptune Energy awards Petrofac two-year extension for work on Cygnus

© Supplied by Neptune EnergyNeptune Energy energy security
Signage on the Cygnus Alpha platform, operated by Neptune Energy.

Energy services giant Petrofac has secured a contract extension with Neptune Energy for work on the Cygnus field.

The two-year deal, coming into effect on January 1, 2022, covers a range of brownfield engineering, procurement, construction and commissioning services for the Cygnus Alpha and Bravo platforms.

It follows the award by Neptune Energy of a separate, £10 million three-year contract extension to Petrofac (LSE: PFC) earlier this year.

Also due to take effect from the beginning of next year, the deal includes operations and maintenance services for Cygnus Alpha in the southern North Sea.

Neptune Energy’s UK managing director Alexandra Thomas said: “Petrofac is an important partner for Neptune Energy in the UK with a strong and well-established understanding of the Cygnus assets.

Neptune Energy gas prices © Neptune Energy
Alexandra Thomas, UK managing director, Neptune Energy.

“The offshore team’s detailed knowledge supports the safe and optimal operation of the facility, and reduces time and costs associated with planning engineering activities. This is crucial given Cygnus is a key component of the UK North Sea’s energy infrastructure, capable of producing 6% of UK domestic gas demand.”

Located around 95 miles off the Lincolnshire coast, Cygnus is capable of producing 6% of the UK’s gas demand.

Neptune Energy is operator and 39% owner of the installation – partner Spirit Energy owns the remaining 61% stake.

Earlier this year Petrofac celebrated a decade working on the field, having begun the pre-operational phase of Cygnus in 2011.

Nick Shorten, Petrofac’s chief operating officer, said: “Our operations experience on Cygnus gives our engineering team unique insight into how to manage key brownfield integrity scopes and EPC modifications with ultra-efficient results; reducing impact on operations and minimising downtime in order that Neptune Energy can continue to meet critical energy demand.

“We are delighted to have the opportunity to build on that approach, and further strengthen our long-term partnership with Neptune Energy.”

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