Market info

Petrofac hit by losses from increase in Shetland project costs


Petrofac has posted a net loss for the first half of the year which was affected by an increase in costs from its Laggan-Tormore project in the Shetland Islands. The company said net loss for the period was $133million, compared with a net profit of $136million a year earlier. Petrofac has incurred $236million in loss on the delayed Shetland Islands project so far this year.

Oil & Gas

Petrofac nets $780million Kuwait contract


Petrofac has been awarded a $780million contract from KOC (Kuwait Oil Company) for its manifold group trunkline in the country. The international oil and gas services provider said the win will play an integral part in KOC’s plans to increase and maintain its crude production over the next five years. There are three new gathering centres – forming part of the broader engineering, procurement and construction contract - already being built.

Oil & Gas

Petrofac’s share price jumps despite Shetland woes


Petrofac’s share price rose nearly 10% to 939p despite mounting costs. The firm confirmed staffing issues, work delays and harsh weather conditions led to an additional £30million in incurred costs for its Laggan-Tormore project . The bloated expenditure brings the company’s total loss in the year to date to £140million.

Oil & Gas

Petrofac’s Laggan-Tormore project costs skyrocket


Petrofac confirmed mounting costs from its Laggan-Tormore project will see its profits “significantly weighted” towards the second half of the year. The firm detailed an additional £30million of costs it has incurred with the flagship gas development in the Shetland Islands, bringing their total loss in the year to date to £140million.

Oil & Gas

Petrofac to consult with a further 21 offshore staff and 100 onshore staff over jobs


Petrofac is in consultation with onshore staff as it looks to make reductions to it headcount. The services company said it was in discussion with around 100 members of staff. However it is understood the number of staff who could face job losses is likely to be around 50. As previously reported earlier this month on Energy Voice, in addition to 79 job reductions as a result of EnQuest’s changes to its shift pattern, a further 21 jobs could also go offshore.

Market info

Petrofac market value drops as Shetland operations costs rise

A fresh profits warning on the troubled Laggan-Tormore gas terminal development hit the share price of service giant Petrofac yesterday. Almost £350million was wiped off Petrofac’s market value as shares slid 10% to 912.5p. The firm admitted it would lose a further £130million on the Total-operated project, in addition to the £154million in losses it took on the scheme in 2014. This on a project value of £800million. Ayman Asfari, Petrofac’s Chief Executive listed a number of difficulties facing the development of the loss-making gas terminal that included industrial action and the high cost of doing business in the North Sea.

Market info

Petrofac to incur additional $195million cost on Shetland Gas Plant


Petrofac is set to incur a further $195million charge on the Laggan-Tormore project as a result of continued delays. The company is currently building the Shetland Gas Plant for Total after signing a £800million deal in 2010 for engineering, procurement, supply, construction and commissioning of the site. Petrofac has previously said it expected to recognise no further profit or loss on the project over the remainder of the contract duration.

Oil & Gas

Petrofac develops maintenance project for Golden Eagle Development


Petrofac has completed a project for Nexen Petroleum on its Golden Eagle Development Area. The company said the work was delivered through its Plant Asset Management consulting business. It involved the development and implementation of a maintenance programme for the installation, which is 70 kilometres north east of Aberdeen.

Oil & Gas

Petrofac reveals fewer than expected job losses for CNRI work

Energy service firm Petrofac plans to axe 16.5 full-time equivalent offshore roles supporting the UK North Sea operations of CNR International (CNRI). A spokeswoman confirmed the fewer-than-expected number last night after 37 possible redundancies was mentioned in a letter to Petrofac employees. It also said workers supplied to CNRI through its Aberdeen-based recruitment business, Atlantic Resourcing, were being “downmanned”.

Oil & Gas

Petrofac bucks weak oil market on order backlog, Subsea Alliance


Petrofac Ltd. bucked weakness in the market for oilfield services as it added orders this year to a record backlog for 2014 with the national oil companies that make up its main customers still investing into the downturn in prices. The company, based in London, also formed a five-year tie-up with McDermott International Inc. to pursue subsea projects. Petrofac advanced 7% to 872 pence, the biggest gain since Oct. 17, by 11:07 a.m. even as it lowered an earnings goal for this year and net income fell 11% in 2014. The company cut its forecast by $40 million to $460 million after a further drop in oil prices since its November estimate, it said Wednesday in an earnings statement. The order backlog rose to a record $18.9 billion in 2014 with intake this year at $3.5 billion. Profit for 2014 was also hit by delayed projects.

Oil & Gas

Petrofac in consultation over jobs on Marathon’s Brae field


Contractor Petrofac could be making a number of job losses after Marathon Oil said it would be reviewing how it maintained and operated its Brae field in the North Sea. The companies are currently in discussion following an announcement by the US firm last month that it would be implementing new maintenance strategies to address its “late Life operations”. In a letter to staff, Petrofac said it had been advised by Marathon that they anticipated a “significant reduction” in discretionary and project type activities on an annual basis.

Oil & Gas

Petrofac wins $4billion contract from Kuwait Oil Company’s development programme


Petrofac has won a $4billion contract for the first phase of Kuwait Oil Company’s (KOC) Lower Fars heavy oil development programme. The company will carry out the work in consortium with the Consolidated Contractors Company (CCC) as its partner. The scope of work covers greenfield and brownfield and includes engineering, procurement, construction, pre-commissioning, start-up and operations, associated infrastructure as well as the production support complex.

Oil & Gas

Petrofac predicts 2015 losses from Laggan-Tormore


Petrofac said it expects its IES net profit for 2015 to drop by around $45million after assessing a number of ongoing projects. The company said the current change in oil prices and “expectation on delivery” of certain IES projects had been behind the estimated reduction. Within the next year, the company said the Laggan-Tormore project in Shetland, would result in “no profit or loss”.

Oil & Gas

Petrofac nets $600million in profit for 2014


International oil and gas facility service provider expects to make up to $600million in profit this year. The company said the past year had been its most successful for new awards, with an ECOM (Engineering, Construction, Operation and Maintenance) order intake of $9.4billion.