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”.
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.
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.
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.
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”.
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.
Independent oil and gas explorer Ithaca Energy saw its share price plummet 11% on Friday after its development partner said delay in delivering a production vessel would hit its key North Sea field.