Petrofacts Feb 2011 - Andy Inglis joins Petrofac


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February 2011 Issue: Syria: country focus, Turkmenistan project moves into second phase, OE&O business spotlight, Andy Inglis joins Petrofac to lead provision of integrated services.

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Petrofacts Feb 2011 - Andy Inglis joins Petrofac

  1. 1. February 2011 | petrofac.comThe winning image from our photography competition
  2. 2. February 2011in this issue 11 Petrofac’s journey To mark our 30th anniversary year, those responsible for the creation of Petrofac look back on the journey so farPetrofacts is designed and published byPetrofac on a quarterly basis. To providecomment or contributions please contact: Corporate Communications 06 Hazel Meldrum/Claire Baxter Engineering & Construction Engineering & Construction Ventures Engineering Services Kaye Krause-Whiteing Offshore Engineering & Operations Jilly Powell Picture Petrofac winners announced Training Services Ivana Petrovich Production Solutions Energy Developments glossary of abbreviations Elinor Geary E&C E&CV EPC ERSC FEED FDP Engineering Engineering Engineering, Emergency Response Front end engineering Field development Cover image & Construction & Construction Procurement, Service Centre and design planning ‘Bay taken from canoe, Ontario, Canada’ Ventures and Construction the winning entry in the Picture Petrofac competition taken by Peter Martin.v FPF HSSEIA IOC JV LSTK LTI Floating production Health, safety, security, International oil Joint venture Lump-sum turnkey Lost Time Incident facility environment and company integrity assurance MOPU NOC OE&O OPITO UKCS Mobile Offshore National oil company Offshore Engineering Offshore Petroleum United Kingdom Production Unit & Operations Industry Training Continental Shelf Organisation2
  3. 3. 10 Turkmenistan project moves into second08 phase Petrofac has commenced work on the next stage of the South Yoloten projectSyria: country focusWe look back at our success in the countryduring 2010 17 TEMPO roll-out success New enterprise resource planning system launched in Malaysia and India 2018 Enhanced presence in NigeriaOE&O business Strategic alliance formed with Nigeria’s Sevenspotlight EnergyContract highlights and engineering 26opportunities Board and management changes Appointments enhance senior management team and Board30 35 Singapore trainingEnvironment month centreOur teams celebrate third successfulenvironmental initiative Awarded ‘A’ grade in quality assessment 3
  4. 4. February 2011WelCoMe to our first 2011eDition of PetrofaCts.this edition co-incides with the30th anniversary of the group andinside you will find an interviewwith some of Petrofac’s founderswhich charts the group’s historyand progress so far.4
  5. 5. petrofac.comLooking back on 2010 I am delighted to say it was anotherexceptional year for our group. We closed the year with recordbacklog and we continue to see strong growth potential in 2011and beyond. It is gratifying to continue to win business with existing customersin geographies we know well. We were recently awarded our sixthEPC project In Algeria to develop southern fields in the In Salahdevelopment on behalf of In Salah Gas. As we go to print, I have just returned from a trip to KualaLumpur where I attended a signing ceremony hosted by our valuedcustomer PETRONAS for a US$800 million Risk Service Contractfor the Berantai field development. Just at the close of the year weannounced that Petronas Carigali Sdn Bhd had awarded Petrofaca US$280 million contract to provide EPCIC services for the SEPAToffshore early production system on the east coast of Malaysia.When taken in combination with the phase II development of theCendor field, Petrofac is now managing projects in Malaysia worthin excess of US$2 billion. This is a remarkable achievement andfurther details of both of these new developments can be foundinside this edition. During 2010 we were awarded a number of important contractsfor new customers expanding our geographic footprint; such as our15-year production enhancement contract in Romania with Petrom,and the second phase of the South Yoloten project in Turkmenistanworth US$3.4 billion. In line with our co-investment strategy, we tooka 20% interest in Gateway Storage Company Limited and investedin Nigeria’s Seven Energy, giving us a foothold in the Nigerian oil &gas market. We have also been able to bring our EPC capability to bear in theUK and work is now underway on the development of the Laggan-Tormore gas processing plant on the Shetland Islands for Total. The group completed four small complementary acquisitionsduring the year and two of these - CO2DeepStore and TNEI Limited– have enabled us to create ‘Petrofac new energy’ to service the lowcarbon and renewable energy sectors. Amidst this, we have continued to focus on developing andmaturing our internal business processes and launched ‘TEMPO’our tailored Oracle ERP system, in Chennai, Mumbai and KualaLumpur with more roll outs planned for during this year. 2010was also the ‘year of integrity and quality’ across our engineeringbusinesses and you can read about our progress on page 22. We have continued to recruit and grow our teams, especially ata senior and functional level and we have been joined by a numberof key individuals across the business. In January we welcomedAndy Inglis to Petrofac as chief executive of Energy Developmentsand Production Solutions. Andy will also join our Board on 1 March2011. Further details on Andy and our other recent Board changescan be found on pages 26 and 27. Overall 2010 has been a fantastic year for Petrofac and I amconfident that we can look forward to bright prospects for 2011 andbeyond.I hope you enjoy this issue.Ayman AsfariGroup Chief Executive 5
  6. 6. February 2011Cover storyPICTURE PETROFACthe WinnersFollowing a much anticipated wait, at the beginning of November we announced ouroverall winner and twelve runners up in this year’s Picture Petrofac competition. Speaking about the competition, Petrofac’s group marketing director, Kaye Krause-Whiteing said: “The competition is now in its third year and we have seen participation grow year on year. Whilst we have the obvious high levels of interest and comment from the amateur photographers in our midst, I have been extremely encouraged by the engagement and feedback from our ‘non photographers’.” Overall winner Peter Martin, whose amazing photograph is featured on the cover of this edition of Petrofacts said: “The image was one of quite literally hundreds I took in order to capture the serenity and mood of the early morning when this was taken. This location is very close to my heart as it is where I have spent many happy holidays. I am absolutely thrilled to have my photograph selected as the winning entry as the quality of the entries seems to keep surpassing those of the previous year.” The winning photographs, illustrated here, take pride of place in the 2011 Petrofac calendar and each of the successful entrants received a Canon EOS 1000D digital SLR Group chief operating officer, MarounBay taken from canoe, Ontario, Canada Semaan, presenting winner Peter Martin camera. with his camera prize 1 2 3 4 5 6 7 8 9 10 11 12Along with Peter, our congratulations also extend to the remaining twelve finalists:1. Andrew Vaughan, Aberdeen, Scotland 5. Gaurav Chakraborty, Sharjah, United Arab 8. Pankaj Vartak, Sharjah, United Arab Emirates2. Jim Kelly, Kuala Lumpur, Malaysia Emirates 9. Guillaume Roux, Woking, England3. Nasrum Mohamad, Kuala Lumpur, Malaysia 6. Bill Boyter, Aberdeen, Scotland 10. Robert Marks, London, England4. Paul Fidder, Dubai, United Arab Emirates 7. Nilima Sawant, Mumbai, India 11. Jamil Boudiab, Sharjah, United Arab Emirates 12. Fanny Turcotte, Abu Dhabi, United Arab Emirates6
  7. 7. suCCess in MalaysiaPETROFAC SECURES TWO NEWCONTRACTS OFFSHORE MALAYSIA Development of the SEPAT offshore early production system In December, Petrofac was awarded a contract by Petronas Carigali Sdn Bhd for the development of the SEPAT offshore early production system on the East coast of Peninsular Malaysia. The contract, which is valued at approximately US$280 million, was awarded following a competitive tender and first oil is expected before the end of 2011.Maroun Semaan, chief operating officer Petrofac will undertake the engineering, Petrofac’s specialist FEED office in Woking, UK. Key facts procurement, construction, installation and Maroun Semaan, group chief operating commissioning (EPCIC) for the full scope of officer, Petrofac, commented: “We are delighted • Contract valued at the early production system in a water depth to have been awarded this contract by Petronas, of approximately 65 metres. The EPCIC will which is our first lump-sum offshore EPCIC approximately US$280 million comprise of a mobile offshore production unit contract in South East Asia. The award reinforces (MOPU), a floating storage and offloading our commitment to the region and enables the • facilities mirror those of the (FSO) facility for the early production of continued growth of our local delivery capability Cendor phase I development, approximately 20,000 barrels of oil per day, to support our ongoing relationship with and all interconnecting subsea pipelines. These Petronas and other regional partners. Petrofac also undertaken by Petrofac facilities mirror those of the Cendor phase I has presented a fast track delivery model development, which was also undertaken by using existing vessels for the FSO and MOPU • water depth of approximately Petrofac on behalf of Petronas in record time conversions and we should be ready for start- 65 metres under a production sharing contract framework. up by the end of 2011. Our ongoing partnership Local partners supporting Petrofac on this on the Cendor field development project in the project are Kencana HL, which will add all region continues to flourish, and we look forward • first oil is expected before the processing equipment to the MOPU, and to delivering for Petronas on this project as well.” the end of 2011 BumiArmada which will supply and install the FSO. The Front End Engineering and Design (FEED) work for the project was carried out inRisk Service Under the RSC the group has little exposure to oil & gas prices or production levels. The terms of the RSC are such that the BerantaiContract partners will receive a rate of return linked to their performance against an agreed incentive structure, including project costs, timingto develop to first gas and sustained gas delivery after project completion, with an ongoing incentive structure based on operational uptime.Berantai field Berantai is an undeveloped gas field located approximately 150km offshore Peninsula Malaysia. The field was inititally discovered by Exxon in the 1970’s but has remained undevelopedPetrofac Energy until now. Petrofac, Sapura and Kencana - together the BerantaiDevelopments announced partners - will develop the field and subsequently operate it for ain January that it had period of seven years after first gas production. Commenting on the partnership Rob Jewkes, managing director, Petrofac Energy Rob Jewkes, managing director,teamed up with Malaysian Developments said: “We are looking forward to working with Petrofac Energy Developmentscompanies SapuraCrest local partners, Kencana and Sapura, both of whom bring uniqueand Kencana Energy capabilities and local knowledge to this project.”to sign a Risk Service The project is hoping to achieve first gas from the field before the end of 2011. The full field development, excluding delivery of “We are excitedContract (RSC) with the floating production storage and offloading (FPSO) vessel, is about this projectPETRONAS, the MalaysianNational Oil Company, to anticipated to require capital investment of approximately US$800 million (of which Petrofac’s share is 50%). Explaining how the field and about workinglead the development of will be developed, Jewkes added: “The fast-track field development once again withthe Berantai field, located plan we have submitted includes the installation of a wellhead platform to support the drilling of eighteen wells, with a second PETRONAS, ain Block PM309, offshore wellhead platform expected to be installed in a subsequent phase. customer we knowPeninsula Malaysia. Both platforms will be connected to an FPSO vessel, which will undergo modification to ensure suitability for the development. well.” Produced gas will be exported by subsea pipeline via the Angsi Field, while oil will be offloaded via shuttle tanker. “We are excited about this project and about working once again with PETRONAS, a customer we know well. We will be drawing on our extensive experience of fast track developments to provide a range of fully integrated services from design and construction 7 through to subsurface capability and operations.”
  8. 8. February 2011SYRIACountry foCusTogether with our customers and partners, Petrofac achieved a number of successes inSyria during 2010. The Ebla gas plant was completed ahead of schedule, hydrocarbonswere successfully introduced to the Jihar gas plant and we created a new nationaltechnical training centre and donated it to the country’s Government.In October, Petrofac took a group of around attended together with representatives50 of our investors and financial analysts from our customers and in-countryto Syria in order for them to see some of suppliers, including long-term in-countrythese projects firsthand. construction partner LEAD. Hosted by Petrofac’s senior and in- Early the next day the group travelledcountry management, the three-day two and a half hours north to the Homsinvestor trip required military-style timing in area, to the country’s first technical trainingorder to ensure the ambitious programme centre which has been refurbished andcould be achieved. equipped by Petrofac. The centre, which Day one started in the ancient capital, had been open and operational for only aDamascus. After receiving a presentation matter of days prior to the visit, was officiallyon Petrofac’s Energy Developments inaugurated by His Excellency Mohammadbusiness from executive VP business Naji Ottri, and after completing a tour of thedevelopment and technical services, facility, led by Petrofac Training Services’Gavin Graham, the group attended a head of strategy, Karim Osseiran, guestsprestigious dinner, hosted by Petrofac with were given the opportunity to find out moreguest of honour, Syria’s Prime Minister, about the Training Services business fromHis Excellency Mohammad Naji Ottri. A managing director, Paul Groves.number of other senior Ministers including The group then departed to the nearbythe Deputy Prime Minister, His Excellency Jihar gas plant, arriving in time for lunch,Abdullah Dardari and the Minister of followed by a tour and presentation led byPetroleum, His Excellency Sufian Allao also Subramanian Sarma, managing director of Petrofac’s Engineering & Construction business. It was a great honour that the STOP PRESS Prime Minister also chose to visit Jihar in Project awards order to see the progress being made. He was accompanied throughout his visit by Petrofac’s group chief executive, Ayman As we are going to print we have Asfari: “His Excellency was impressed received notification that two of our with the high standard of the national E&C projects have won awards; training centre that Petrofac has created for the country. The first programme Ebla gas plant, Syria is well underway and I feel certain this The Ebla gas plant project, which facility is going to play a key role in helping Petrofac executed on behalf of Syria achieve an increasingly skilled and Petro-Canada in Syria, has secured competent workforce. a prestigious operational excellence “While at Jihar, we were able to award from Suncor Energy as demonstrate the progress on a project that the best project of 2010. This is is on track for on-time completion and with further great news for the project an exemplary HSE record.” which was delivered two months On the final day of the trip, guests were ahead of the original schedule and treated to a guided tour of the ruined city recently received its final completion of Palmyra, close to the Jihar gas plant, certificate. before visiting the Ebla gas plant, which was completed by Petrofac on behalf Facilities upgrade project, Kuwait of Petro-Canada earlier in 2010. After The facilities upgrade project, which a short coach-based tour of the site, Petrofac completed on behalf of guests met with senior representatives Kuwait Oil Company earlier in 2010, of Petro-Canada, who praised Petrofac’s has secured a MEED quality award performance in relation to the completion for projects. of the project two months ahead of schedule. Chosen by the Kuwait Society of Engineers as the winner in the ‘oil & gas project of the year’ category in Kuwait, the project now progresses to the next stage of judging to compete against other regional projects to become the overall GCC winner in its category.8
  9. 9. petrofac.comPROJECT FOCUS: PROJECT FOCUS:the national training Jihar gas PlantCentre suPPorting the introDuCing hyDroCarbonsDeveloPMent of syria’s anD Celebrating key safetyWorkforCe MilestoneThe National Training Centre, which opened During November our Jihar projectits doors to students in September, forms with Hayan Petroleum Company (HPC)part of the Syrian Government’s commitment successfully introduced hydrocarbons intoto develop competent personnel for the the gas plant.growing oil & gas sector. The centre wasrefurbished and equipped by Petrofac Commenting on this important development, Maher Mustafa, Jihar project director said: “During November the project team of HPCand donated by the group to the Syrian and Petrofac celebrated achieving mechanical completion and theGovernment. successful introduction of hydrocarbons into the plant. This was the culmination of significant efforts on the part of everyone involved but a special note of thanks must be extended to the construction and commissioning teams for their considerable endeavours in helping us reach this milestone.” The Hayan block is located near to the town of Palmyra and consists of gas and condensate oil fields at Jihar, Al Mahr and Jazal fields. Our project scope is for the EPCC of the Jihar gas processing facilities involving mainly the gas treatment plant with an inlet capacity of 141 million standard cubic feet per day, liquid petroleum gas (LPG) recovery of 350 cubic meters per day (m3/ day) and condensate of 1,800m3/day, LPG storage and loading facility, gas gathering and condensate collecting systems, satellite gathering stations, well sites and flow lines, utilities and offsite facilities, transport pipelines, and also living quarters. The Jihar project has been a great success for Petrofac in Syria and continues to progress on target for final completion and handover in Q1 2011. Through the dedication of everyone involved there has also been an enviable HSE track record throughout thisThe training centre, the first of its kind in the country, provides project where seven million man-hours have been completedcompetence-led training to the workforce of General Petroleum without a Lost Time Incident (LTI). Mustafa explains: “This HSECorporation, the parent company of the Syrian Petroleum and performance has been down to the meticulous attention paid toSyrian Gas companies. Designed by Petrofac’s Training Services safety through all aspects of the planning, design and execution ofbusiness, the facility has been built on a brownfield site near Al the project. This was evident throughout the project and the resultsBisa, Homs in central Syria. now speak for themselves. The centre can accommodate 120 delegates each year and the “As Petrofacts goes to press, we are in the final stages of theprogramme starts with three months of technical English language project, and will be completing the performance testing in order totraining followed by nine months of technical training incorporating hand over the plant fully to Hayan Petroleum Company in the earlythe electrical, mechanical, instrumentation and production part of 2011.”disciplines.Self-sufficient in five yearsThe centre will be operated by Petrofac Training Services for fiveyears. It is currently staffed by a 30-strong Petrofac-led teamincluding nine expatriate instructors, but over time all instructorswill be local, as Paul Groves, managing director of Petrofac TrainingServices explains: “We have applied our knowledge and experienceto design and develop the centre and for the next five years we willprovide the operations support for the facility. During this time,we will be recruiting, training and developing local instructors andmanagers to create a sustainable facility where Syrian students arebeing trained exclusively by Syrian instructors by 2015.”An unrivalled offeringThe ability to offer world-class training either through the networkof Petrofac’s training facilities, or through the creation of bespokein-country sites is a fundamental part of Petrofac’s differentiatedoffering. By including the training and ongoing development oflocal staff within the wider EPC projects, governments and national 7 millionoil companies can benefit from increased efficiencies and reducedtraining expenditure while improving their workforce competenceand increasing their levels of local content. The number of LTI free man-hours completed during the Jihar project so far 9
  10. 10. February 2011ProJeCt uPDate Petrofac to commence US$3.4 billion South Yoloten Grading at the South Yoloten site field contract Following successful completion of the first phase of the South Yoloten project for Turkmengas, the state-owned national gas company of Turkmenistan, Petrofac has commenced work on the second phase of the project, worth US$3.4 billion. Marwan Chedid, managing director of Petrofac’s Engineering & Construction Ventures business, said: “Following the successful completion of the first phase of this contract awarded in December last year, I am delighted that we are moving into the substantial second phase where we will be able to bring to bear our extensive experience of designing and constructing facilities to handle and process sour gas. Our initial planning and set-up studies have given us confidence that we can maintain our high working standards and first class project delivery in Turkmenistan, and we are excited to be working with Turkmengas on this important project.” When complete, the South Yoloten field, which is situated approximately 400km south east of the capital Ashgabat, is expected to export 20 billion cubic metres per annum (bcma) of gas. Under the Ashgabat, capital of Turkmenistan second phase of the contract, which is scheduled to last 31.5 months, Petrofac will provide engineering, procurement and commissioning work on a lump-sum basis for a 10 bcma gas processing plant along with the infrastructure and pipelines for the entire 20 bcma development. The feed gas from the field contains up to 6% H2S, and the development will include gas treatment and sulphur handling facilities, along with well pad facilities, gathering facilities, infrastructure and utilities, condensate processing, storage and export. Maroun Semaan, group chief operating officer, commented: “Whilst we have substantial experience of working in the region, Turkmenistan is a new market for us, albeit one with considerable potential, where we would like to build a sustained presence.  Successfully delivering this contract will underpin our endeavours in this respect and I look forward to developing our relationship with Turkmengas as we move into the second phase of our work on this important development.” Marwan Chedid, managing director of Petrofac Engineering & Construction VenturesKey facts South Yoloten It is expected to Second phase Feed gas field is situated export 20 bcma of the contract from the field approximately of gas scheduled to contains up to 400km south last 31.5 months 6% H2S east of the capital Ashgabat10
  11. 11. PetrofaC’s storyTHE NExT STAGEOF THE JOURNEY...PETrOfaC Marks iTs 30th yEar in continued overleaf >BusinEss On 26 fEBruary 2011 11
  12. 12. February 2011> continued from overleafPetrofacts has been talking tothose responsible for the creationof the company and the inspirationbehind its 30-year journey. Groupchief executive, Ayman Asfari willalso mark his 20th year with thecompany in 2011; he believes thebuilding of Petrofac has truly beena team effort.At the end of 2010 as he accepted the Ernst &Young UK Entrepreneur of the Year award, Ayman Ralph Martin Ayman AsfariAsfari thanked all of the 13,000 people withinPetrofac, dedicated the award to them all and saidhe was ‘simply the public face’ of the group. At Petrofac’s Leadership Conference inNovember Asfari reflected on the group’s journeyand his vision for the future. He cited a numberof early events and the people who influencedhim and the future direction of the group as beinginstrumental in its subsequent development andsuccess. It’s no surprise that top of his list was MarounSemaan, Petrofac’s group chief operating officer,who co-founded Petrofac International with Asfari Joined Petrofac: Joined Petrofac:in 1991. Asfari and Semaan were friends and January 1981 March 1991industry peers, and it was Asfari that introduced First position: First position:Semaan to Ralph Martin, then CEO of Petrofac Chief executive officer of Petrofac Inc Chief executive officer of PetrofacInc, a producer of modular plant based in Tyler, InternationalTexas. Together with the Petrofac team of the Final position:era, including: Lou Owen, Greg Hendrickson and Chairman of Petrofac Limited Current position:Gordon McLeod, they hatched a plan to create Group chief executive of Petrofac Limited Proudest moment:Petrofac International, a Middle East-based small When the billion dollar job was signed in Proudest moment:to medium-sized EPC provider. Algeria - it was signed in the Petroleum There are so many moments when I feel Recounting those early meetings which started building in Algeria which overlooked Algiers proud, such as:in the late 1980s, Ralph Martin, one of the original harbour. The salad and soup were served on • visiting a project and being struck by thefounders of Petrofac Inc, and the CEO of the very nice china then the main course was magnitude of what we are involved in lamb on a spit and you tore the meat off and • receiving appreciative feedback from atime, said: “We had worked successfully with ate it with your right hand. customer or shareholderAyman’s previous company on a project in Oman, • watching a new recruit blossom and growand I was introduced to Ayman through a senior Toughest challenge: inside Petrofaccolleague at Occidental. Ayman then introduced 1981 was a terrible year in the oil businessme to Maroun. At that time Ayman was talking but we were fortunate enough to get a small Toughest challenge:to a Canadian company about forming a joint refinery job through a promoter in Hong Kong. Again there were a few: We made a million dollars on the job – which • before we won our first contracts we had noventure and it made me realise that if Ayman and gave us some operating capital! resources, no systems and no capital!Maroun were going to be playing in the field, I • when we invested US$100 million in thewanted them on our team.” Which one word or phrase would you use to Ohanet project the total equity of Petrofac Martin clearly had high hopes for the joint sum-up Petrofac’s journey from then to now?: was only US$40 million!venture with Asfari and Semaan but did he ever Amazing! • selling the US business was without doubtbelieve Petrofac would go on to enjoy such the toughest decision I have ever had totremendous growth and success? “If I had, I makewould never have sold my stock when I retired!” business in the Middle East and wanted me to Which one word or phrase would you use to Asfari himself cites Martin as his mentor and join in. This vision became clearer in early 1991 sum-up Petrofac’s journey from then to now?:inspiration. “I count Ralph as one of my closest when discussions with Petrofac Inc culminated in We’ve come a long way in 30 years butfriends. I respect and admire him immensely. We the establishment of Petrofac International in July our potential for continued growth is stilleach had different strengths but shared a vision of that year as a joint venture company between tremendous. I have enjoyed every minute of it!for Petrofac which aligned us when we were Petrofac Inc and AMcorp, a company that Aymandiscussing the joint venture.” and I had just formed.” So just how did it come to be that two Middle Gordon McLeod joined Petrofac in 1982, left Greg Hendrickson was the chief financial officerEast-based engineers, who knew each other but in 2003 but rejoined in 2010: “Prior to establishing and remembers the time well: “The sleeplesshad never worked together, formed an alliance the joint venture, Petrofac’s US business was nights revolved primarily around how to bid andwith a US business with an established business built around our fabrication shop. Our innovative execute larger projects, and we took on anymodel and a ten-year history? process designs and fast-track approach were project that was in our skill set and worked hard Maroun Semaan recalls those early fuelled by the considerable technical talents of to gain larger, more lucrative projects. We camediscussions, “I joined Petrofac International Lou Owen and Ralph Martin. When I joined there close to failure in 1984, when we engineeredofficially on 1 September 1991, but the journey were only a handful of engineers and our total and built a plant for a customer that ended up inbegan much earlier. Ayman and I first came to workforce including the fabrication shop was bankruptcy. We had invested most of our workingknow each other in the early 1980s when we around 25 people, it was an exciting time when capital and available credit in the project and werewere working for different organisations in Oman, we all wore lots of different hats.” at the mercy of the bankruptcy courts. Fortunatelysometimes competing against each other for Like many new businesses, it took a number the project was not complete at the time when thework in the local market. I soon realised he had of years to grow Petrofac Inc to the extent where customer filed for bankruptcy and so we werestrong ambitions to set up an oil & gas contracting it had a robust pipeline and good revenue visibility. able to negotiate a payment that returned most12
  13. 13. petrofac.comof our investment in exchange for committing tocomplete the project.” It was through this continued search for growth Maroun Semaan Lou Owenand development that the idea for the creation ofPetrofac International came, but it was met withsome strong opposition. The US founders werenervous about the deal and if it had not been forRalph Martin’s belief in the duo it may never havegone ahead. Hendrickson continues: “Most of us had heardof Ayman from the Oman project we had workedon, but only Ralph had actually met him. So whenAyman came to Tyler and made a very positiveyet aggressive presentation on the businessplan we were somewhat sceptical that a newlyformed company could achieve success and be Joined Petrofac: Joined Petrofac:awarded major contracts as rapidly as Ayman was 1 September 1991 1 January 1982predicting. Ralph was instrumental in convincing First position: First position:the Board to proceed with the proposed business Vice president, operations and Board member Vice president engineeringarrangement, recognising that it would be betterto be working with, rather than competing against Current position: Final position:Ayman and Maroun.” Chief operating officer and Board director Senior vice president/President Petrofac Inc Petrofac International was capitalised at US$1 Proudest moment: Proudest moment:million, funded equally between the US business There have been many events of which I am Formation of Petrofac International. I alwaysand AMcorp. The management team realised immensely proud. Each was at the time, and felt it was going to be a positive development.that no further funds would be forthcoming so continues to remain, significant to me asit was imperative to build strong foundations we take the business forward. Our four EPC Toughest challenge: project wins in 1992 allowed us to kick start The early days were challenging as we neverfor the business quickly. In the early weeks and knew if we were going to be able to pay themonths efforts were focused entirely on business the company and this was a fantastic and challenging period for the whole team with a bills or not but selling the US business wasdevelopment. Early breakthroughs came in the continual succession of projects thereafter. the toughest decision.form of some relatively small contracts (circa US$ At a personal level, my proudest moments6 - 7 million) in Syria and Azerbaijan. With very Which one word or phrase would you use to are being able to play a part in and share sum-up Petrofac’s journey from then to now?:few people to execute these contracts, it was a the achievements of my fellow Petrofac Absolutely great! It was just fun all the way!true test of the fledgling business’ capability and colleagues and of course my own family.the team’s determination. Further challenges Toughest challenge:were ahead however, with the company’s funds The constant challenge of remainingdwindling rapidly, the business needed to secure So the stage was set, the company was competitive, growing an enduring businesslarger contracts and it needed more staff. and building a solid reputation was a big expanding and had its first major project secured. A breakthrough came in late 1991 when challenge on day one of Petrofac’s journey Semaan, having initially been based in Tyler,Petrofac was invited to pre-qualify for the North and will always continue to be so. It is that relocated to the now established Sharjah office inOman Crude Stabilisation (NOCS) project for challenge that makes it exciting for me to get order to start to realise the company’s vision. “WePetroleum Development Oman (PDO). There was out of bed every day and work with our teams had the determination to pursue, win and executea problem, however, as Petrofac International to ensure we remain successful. large lump-sum projects – a challenge which manydid not have the financial muscle to take on, Which one word or phrase would you use to contractors still avoid today! We realised from thewhat was at the time, a massive US$60 million sum-up Petrofac’s journey from then to now?: very beginning that in order to be successful weproject. Undeterred the team turned to Galfar, A journey of excitement, passion and hard first had to be based close to our of Oman’s leading construction companies, work and a voyage of many new beginnings. Secondly, we had to establish and grow a multi-and formed a joint venture. Galfar brought the national and cost efficient organisation of thenecessary financial strength and the JV was highest calibre that could execute and manageprequalified and invited to bid for the project. Although clearly delighted with this progress, the risks associated with EPC contracts. the team now had another problem – people – or “The Sharjah journey really gathered rather the lack of them. In anticipation of winning momentum when we were joined in those early the contract Asfari and Semaan headed to India in formative days by members of team who are still “Those first ten years search of engineering talent. “It was not difficult with us today: Rajesh Verma, Marwan Chedid, very much represented to find excellent engineers or to persuade them to join Petrofac”, recalls Asfari “what was difficult Murugan Pitchai, Mark Thomas, Jean Chidiac, Rohit Beri, RG Gopal and indeed many others, laying the foundations was the considerable red tape around processing too numerous to mention here but certainly not of Petrofac: systems, work permits and visas for them to come and work in the US. In the end I think we hired around overlooked, who created the bedrock for the business. procedures and the 20 engineers and many of them are still with us “Those first ten years very much represented painstaking process today in senior roles.” Gordon McLeod worked on the NOCS bid: laying the foundations of Petrofac: systems, procedures and the painstaking process of of establishing the “We submitted an alternate design based on an establishing the different departments, country offices and partnerships.” different departments, idea that Ralph and I had discussed during the prequal stage, which was to substitute liquid ring Throughout this the company continued country offices and vacuum compressors for the centrifugal machines to grow. It secured and successfully executed numerous projects and in the late 1990s the called for in PDO’s specification. The alternative partnerships.” saved a considerable amount of money as well group was joined by Amjad Bseisu to set up the as circumventing a significant technical difficulty. Resources division (now Energy Developments). Maroun Semaan, Ultimately PDO accepted our alternate proposal The vision was to align Petrofac more closely Chief operating officer and the Petrofac/Galfar team was awarded the with its customers through the provision of capital project in April 1992.” investment in upstream and infrastructure projects for which Petrofac was also deploying its service capability. continued overleaf > 13
  14. 14. February 2011 Company timeline 1981 Petrofac Inc, Tyler, Texas 25 members of staff 1991 Ayman Asfari and Maroun Semaan join and found Petrofac International. Capitalised as US$1 million 1992 Awarded the NOCS project, valued at US$60 million 1997 Amjad Bseisu joins to set up Resources division (now Energy Developments) 2000 Awarded the Ohanet project, valued at US$1 billion 2002 Petrofac undergoes a corporate reorganisation 2003 US business is sold > continued from overleaf The first realisation of this strategy came in business in Woking. Stacey went on to serve as 2000 when the group entered an agreement with the group’s vice chairman until his retirement from 2005 Algeria’s Sonatrach and BHP Billiton to provide Petrofac in 2005. In December 2002 Petrofac The group admitted to the EPC capability for the US$1 billion Ohanet project entered the UK North Sea market through the Official List of the London in the country while also deploying capital for a acquisition of PGS Production to provide facilities Stock Exchange with market 10% investment in the development. Ohanet management, operations and maintenance capitalisation of around took 39 months to complete and was the largest services. This was led by current group director US$1.3 billion contract Petrofac had undertaken at that time. By for strategy and corporate development, Rob becoming a partner and aligning itself through Pinchbeck, who had just joined that year and the deployment of capital Petrofac was able to was instrumental in the development and growth assist in the challenges the joint venture faced. of the UK North Sea business. In the same year, 2008 The project was an outstanding success and the Keith Roberts joined as group CFO and was The group enters the FTSE 100 signing of the Ohanet contract and its significance instrumental in the creation of internal processes for the group is something that stands out as a that would enable Petrofac to continue to grow milestone event for many of the founders. and develop and ultimately fulfil its potential to 2010 In January 2002, Asfari led a corporate reorganisation through which Petrofac Limited become a public company. The new group was developing its capability Completes demerger of became the parent company for the group. In May and entering new markets, but in contrast the US UKCS oil & gas assets to 2002 Petrofac raised US$40.25 million of long- business was struggling to adapt its business EnQuest PLC term capital from 3i Group plc giving them a 13% model in order to keep pace with the changing interest in the Company. Martin became chairman market landscape. and Asfari the chief executive of the new group As Asfari recalls: “When we realised that 2011 which had around 900 staff. the US business was not going to continue to Within this new structure the team set about succeed as part of our group, the decision to Petrofac’s market growing the already successful EPC and co- sell it to Chicago Bridge & Iron company was the capitalisation more than US$8 investment businesses through both acquisition hardest I have ever had to make. I didn’t want to billion. The group has some and organic development. In early 2001 Mike sell the US business, it was where our journey had 13,000 staff working in around Stacey joined to establish full field facilities started, but it was clear it was the right thing to do 25 countries worldwide development and front end engineering design if we were to take the maximum advantage of the capability through the creation of the engineering opportunities that were presenting themselves in international markets.” The sale was completed in 2003 and many of the US shareholders chose to sell their stock back to Petrofac at that time; a decision many say they now regret.14
  15. 15.“It would be easy to feel satisfiedwith what we have achieved and tosimply coast along, but I believe thatcomplacency, above all things, is thequickest path to failure.”Ayman Asfari,Group chief executive During 2004, Petrofac created its training happen, and you could not get anyone better than capability through the acquisition of leading Maroun at running an engineering & constructionGreg Hendrickson international training provider RGIT Montrose, company. Petrofac was in safe hands and I was reflecting the importance the group placed confident that they would either sell or float the on being able to provide safe and competent business; it didn’t seem like much of a gamble to personnel for the oil & gas facilities it was building wait. and operating around the globe. “I have been extremely fortunate as a result and Since the beginning of the decade the group my wife Peaches and I have donated more than had focused on expanding its portfolio and US$40 million to local causes and charities here capabilities and had an extremely robust business in Tyler. We set up the Owen Family Foundation model when it came out of private ownership. In which still donates around US$800,000 each year October 2005, following a successful Initial Public from the earnings gained on Petrofac stock.” Offering (IPO), the group was admitted to the In April 2010 Petrofac completed the demerger Official List of the London Stock Exchange with a of its UK Continental Shelf (UKCS) oil & gas assets market capitalisation of around US$1.3 billion. 3i, to EnQuest PLC where they were combined Joined Petrofac: having invested in the business during the 2002 with the UKCS assets of Lundin Petroleum AB February 1981 re-organisation, exited at the time of the IPO. in a separately listed entity. This crystallised Petrofac’s IPO was a major achievement in a significant gain for Petrofac and enabled all First position: Corporate secretary/treasurer the group’s history. For the first time there was existing shareholders in the group to also become an independent validation of the business and its shareholders in an E&P company which has since Final position: future prospects, along with exposure to a new gone on to increase in value as a public company. Senior vice president and chief financial and wide-ranging set of stakeholders. When asked Having joined in 1997 to establish Energy officer of Petrofac Inc about the significance of the IPO Asfari has one Developments within Petrofac Amjad Bseisu left Proudest moment: thought to share: “It was gratifying and something Petrofac following the demerger to lead EnQuest There was no single moment but providing of a relief to prove to the team the shares they PLC as chief executive officer. a livelihood for employees and their families had in the group were not just worthless ‘bits of At the end of January 2011, as we go to while improving opportunities and operations paper’ and the share price in the public market print, Petrofac is entering its fourth year as a for our customers was always an inspiring was evidence of their real value. For many years, I constituent of the FTSE100 Index with market feeling. had been telling them this would be the case, but capitalisation of more than US$8 billion. The Toughest challenge: I’m not sure they believed me!” group has experienced significant organic growth Always keeping enough work on the horizon One person who had complete faith in and now has some 13,000 staff working in around to avoid having to lay off employees that were Petrofac and its leadership was Lou Owen. In 25 countries worldwide. 2010 closed with record doing a good job. It is never difficult to fire an 2003, when the US business was sold, he made backlog having signed our largest ever contract under performer, but it is a bad feeling to have the decision to retain his shares in Petrofac. As with Turkmenistan’s state-owned national gas to lay off a hard working, dedicated employee Owen recalls: “I never even thought about selling. company, Turkmengas, worth US$3.4 billion. because you cannot gain enough contracts to keep them employed. Ayman and I had talked about his plans and I had always believed him to be a far-sighted and Which one word or phrase would you use to visionary individual with the ability to make things continued overleaf > sum-up Petrofac’s journey from then to now?: Proud 15
  16. 16. February 2011> continued from overleaf So what do Ayman Asfari and Maroun Semaanthink of this company they built 20 years on andwhat does the future now hold for Petrofac? “Ensuring we have an enduring and efficientbusiness with clear targets and objectives whichare well understood by our management withoutdiluting the prevailing entrepreneurial culture willbe critical to success,” says Semaan. “Backin 1991 the board had a consistent vision forcontinued growth and success underpinned byour passion and commitment to delivery for ourcustomers and to attract the best talent on board,a vision that we continue to live by today. Theentire energy sector is constantly evolving and wehave to take considered, strategic measures toensure we can change with it, remain innovativein our approach - technically and commercially -and instil the same set of values as new peoplecontinually join our organisation. “At a personal level, I am extremely passionateabout what we do but I am certainly not alonein that. There is a high degree of commitment,loyalty and dedication running through ourbusiness which is very powerful and, as we grow,we need to ensure that remains as alive in 30years time as it was in 1981, 1991 and today. “Looking back at the journey and withhindsight, most of us would do many thingsdifferently, however, I relish my life’s journey andhave soaked up every experience along the way.” Asfari concludes with his thoughts on thejourney so far and the next instalment: “The hard work and dedication of manyexceptional people combined with some goodfortune has brought us to this point, and we can allGordon McLeod be very proud of what we have achieved. It hasn’t contribution is both recognised and appreciated. always been easy and we have had to make some This is not an exhaustive list and so many more tough decisions along the way, but every decision people have contributed to Petrofac’s success has been made in the best interests of the group and I do thank you all most sincerely. Finally, and its future sustainability and success. I would like to recognise the guiding role of our “I would like to take this opportunity to extend Board and the contribution of our non-executive my personal thanks to those colleagues who have directors. They have supported the executive supported me on this journey so far. Firstly, to the team at every stage of Petrofac’s development. I Board of Petrofac Inc for their belief and especially would especially like to thank Rodney for leading to Ralph and Lou, my mentors and dear friends. our Board as chairman for the last six years and Joined Petrofac: I’d especially like to thank Maroun for sharing this for his own valuable contribution. I first joined Petrofac on 1 December 1982. journey with me; it has been a fantastic experience “It would be easy to feel satisfied with what I left in April 2003 and rejoined full time in to work alongside someone for so long and to have we have achieved and to simply coast along, but September 2010. achieved so much together. To Amjad, who made I believe that complacency, above all things, is a significant contribution to our group and is now the quickest path to failure. The Petrofac of 2041 First position: Instrument and electrical engineer a very important customer for Petrofac! To Keith will look very different to the Petrofac of today, Roberts and Rob Pinchbeck, who both joined of that I am certain. So, the next steps in our Current position: Petrofac in 2002 and I am grateful for their support journey will be to continually evolve and develop Vice president, Americas and contribution. Keith has been instrumental in our capability, our commercial structures and to Proudest moment: creating process and structure within our business stay at pace with the market and the changing Being selected to serve as vice president as we have grown and also led the execution of demands of our customers. I am as committed Engineering in the newly formed Petrofac the IPO transaction very successfully in 2005, to Petrofac today as I was in 1991. I’m looking International in 1991. while Rob led the acquisition of PGS production forward to participating in this next chapter of in 2002 establishing and building our offshore our history and am very excited by the inevitable Toughest challenge: Serving simultaneously as vice president business in the North Sea. Our group director for challenges it will bring.” engineering and director of Petrofac legal and commercial affairs, Richard Milne, joined International and as project director of the us in 2004 and has been instrumental in creating North Oman Crude Stabilisation Project, our governance and compliance framework. I’d Petrofac International’s first major EPC like to thank each of the business unit managing project. directors: Marwan Chedid, Rajesh Verma, Which one word or phrase would you use to Subramanian Sarma, Rob Jewkes, Gordon East, sum-up Petrofac’s journey from then to now?: Bill Dunnett and Paul Groves. Some have been Vision with us for almost 20 years and some have joined the group more recently, but their individual16
  17. 17. infrastruCture uPDate PROJECT TEMPO SUCCESSFULLY LAUNCHED IN MALAYSIA AND INDIA uPDate froM Mohan narasiMhan, grouP Chief inforMation offiCer In November 2010 we celebrated the launch of our new Oracle Enterprise Resource Planning (ERP) system - project TEMPO - in Chennai and Mumbai, India, and Kuala Lumpur, Malaysia. This was the first part of our staged roll-out of TEMPO across the group and I am delighted to report the success of TEMPO in daily operations. The successful implementation of TEMPOName in India and Malaysia could not have beenMohan Narasimhan accomplished if it were not for the unwaveringTitle efforts of the ERP teams and all individualsGroup chief involved in this two-year project. Energyinformation officer Developments’ finance manager for theLocation Malaysian business, Jeffry Ahmad, is oneSharjah such employee who contributed above and beyond expectations. In recognition of this, and as a token of Petrofac’s appreciation, Jeffry has been awarded a letter of recognition and a gift. These were presented to Jeffry by chief financial officer, Keith Roberts, at the recent Petrofac finance conference in London. The next stage will see the implementation of the system in our UK businesses. Although initially estimated to begin roll-out in January, due to crucial challenges around customisation and system configuration, this launch date is scheduled to take place between March and April. The implementation of TEMPO is a significant structural investment for Petrofac and demonstrates our commitment to continued development. It is therefore essential that every opportunity is taken to ensure the system is robust and right for our business. This is a system we hope to be using for the next 20 years. Petrofacts caught up with the teams in KL, where the system has been embedded now for more than two months to find out how it has been working for them… Faisal Razak: “The system now has all of our projects data in one place for the first time. It is very powerful, but it will take a while for us to understand how best to extract the data.” Zahari Jasmani: “Switching to the new system was harder than we expected. However, it’s in now and we are ready to support all existing and any new projects in Malaysia.” Fariz Ikshan: “Transaction entry is very structured so now all of the upfront approval prevents problems later.” 17
  18. 18. February 2011business foCus Petrofac awarded onshore UKCS gas plant development contract Petrofac Offshore Engineering & Operations (OE&O) has been awarded a contract for the development of a gas processing plant at Sullom Voe, Shetland for Total E&P UK (Total) that will see the business leverage capabilities from across the group.Supported by the Engineering & Construction business, PetrofacOE&O will develop the 500 million standard cubic feet per daygas processing plant on behalf of Total. The project comprisesengineering and procurement (on a lump-sum basis) and supply,construction, commissioning and start-up (on a combinedlump-sum and reimbursable basis). The plant will facilitate thetransportation of gas from the Laggan and Tormore fields, which lie125km North-West of the Shetland Islands, to the Total operated StFergus Gas Terminal in Aberdeenshire.Significant milestoneMaroun Semaan, Petrofac’s group chief operating officer,commented: “We are pleased to have been awarded this importantcontract with Total, a major international customer for our group.The contract, which has been secured following an extensiveproject definition and competitive bidding process, forms part ofthe strategic growth plan for the OE&O business and marks ourfirst EPC contract in the UK.” Bill Dunnett, managing director of OE&O, said: “Thisannouncement represents a very significant milestone for the Alex Hosie, project director, OE&O, outlined our commitmentsOE&O business. We have mobilised an excellent project team to the local area: “As a business we’re expert in dealing withfocused upon delivering the project objectives, while ensuring complex projects in remote locations. We take that expertise towe respect both the location and the environment, and to work Shetland alongside a respect for and dedication to protectingalongside the local Shetland community.” the local community. Not only is this project expected to create more than 500 jobs in the UK, it will also utilise the Shetland-basedLocal engagement supply chain, will bring more people to the island and ultimately increase spending in the area. We are dedicated to ensuring thatTotal’s gas terminal will be developed on land adjacent to BP’s the people of Shetland are positively impacted by this developmentexisting facility at Sullom Voe. The area is one already synonymous and we will work with them to ensure a legacy that continues to dowith gas processing but the potential impact of another gas so beyond the completion of the project in 2014.”terminal in the area has not been overlooked. Total has embarkedon a significant programme of consultation and engagement with Thinking differentlythe Shetland community to ensure that the operations teams fromboth Total and Petrofac work harmoniously within the community. A unique aspect of the project will see the team maximising the useThese teams will form a key part of the local landscape for almost of modularised components allowing the plant to be developedfour years and Petrofac intends to maintain these high levels of mainly offsite and therefore helping to overcome the remoteengagement going forward. location and potentially harsh weather conditions. Protecting the environment has also been a key concern of the With work having commenced in October and first gasproject and Petrofac has engaged an environmental consultant anticipated in Q2 2014 a project team has been deployed toexpert on the Shetland ecology to guide and support the project Sharjah to begin initial engineering works. Construction work isteam throughout the build. expected to begin later this year.18
  19. 19. petrofac.comOE&O growth plan deliversFollowing the recent success of the Laggan-Tormore contract award, PetrofacOE&O has also announced a new three-year agreement worth £40 million withMaersk Oil North Sea (Maersk Oil). The contract covers the provision of engineering services including concept, front end engineering, detail design, workpack development, procurement and document control for the Janice, Gryphon and Global Producer III assets. OE&O has been providing offshore operations and support services to these assets since 2000 and this contract extends the existing scope. Bill Dunnett, managing director of Petrofac OE&O, said: “I’m delighted to announce a further significant contract award for OE&O. This is yet another important step in our growth plan and reflects the leading capabilities of our engineering team as well as our continued commitment to our existing customer base. The contract builds on our longstanding and successful relationship with Maersk Oil and is an excellent example of how Petrofac can deliver a full range of services across the asset lifecycle.” The contract, which will be managed from Petrofac’s Bridge View office in Aberdeen, includes three one-year options and will require the support of up to 70 people. The team will be resourced from the reallocation of existing resources, potential transfers under the TUPE regulations from the incumbent provider, Aker Solutions and the recruitment of between 30 and 50 new employees.Engineering opportunities within OE&OFollowing a number of recent contract awards for Petrofac OE&O, Petrofactscaught up with Jim Lenton, projects director for OE&O, to talk about plans toexpand on the talented pool of engineers within the business unit. What has lead to the growth in the engineering team? What does the future look like for engineering within With a healthy bidding pipeline and ambitious plans for the future, OE&O? we rely upon a strong and talented workforce to maintain our We are working on some of the industry’s most innovative track record. We are always looking to recruit exceptional talent, projects. In the UK alone we have a number of long-term but due to recent contract awards we have the opportunity to contracts underway, including our work with Apache, Marathon add to our team of skilled engineers. and Centrica, and also with our recent Maersk award. Further afield, we are working on significant projects with Petrom in What are you looking to achieve when you recruit engineers Romania and have a growing presence in Dubai.Name into your team? The OE&O business unit is rapidly expanding and we have aJim Lenton We are looking for talented engineers and designers to add value clear strategy for growth outside the UK. As a financially strongTitle to our expanding service offering and every person within OE&O player, we can bid for lump-sum contracts that would be beyondProjects director, plays a vital role in achieving the end goal. Our engineers come some of our competitors. It is definitely empowering to be partOE&O up with innovative solutions to the challenges we face, and so of something so big.Location we need people who are not afraid to tackle these complexities If we continue the way we are currently working under theAberdeen head-on; these are the people who are right for our business. leadership of our managing director, Bill Dunnett, this will likely be achieved. It’s an exciting time to be part of Petrofac and we What opportunities have become available due to these are looking to the future with confidence. contract awards? We have a range of positions available including those across engineering, design and project management disciplines, with opportunities for overseas travel, details of which can be found on our website. 19
  20. 20. February 2011Country exPansionPETrOfaC fOrMs sTraTEGiCaLLianCE WiTH niGEria’ssEVEn EnErGyIn November, Petrofac announced that it had entered into a strategic alliance with Seven EnergyInternational Limited (Seven Energy), a leading Nigerian production and development company.The transaction will allow Petrofac to establish an ongoing presence in country and provide anopportunity for further growth. With proven oil & gas reserves estimated at 37 billion barrels and 185 trillion cubic feet respectively, Nigeria is Africa’s largest oil producer and the tenth largest oil producer in the world. The West African country is predicted to be one Niger of the fastest growing emerging countries with expected growth in the energy and power sectors making it an attractive prospect for Petrofac. Petrofacts talks to Gordon East, managing director, Production Solutions to find out more.NameGordon East What exactly does this strategic alliance mean forTitle Petrofac?Managing director,Production Petrofac has invested US$100 million, funded from cashSolutions resources, to acquire a 15% interest in Seven Energy.Location As part of the agreement we are providing experiencedLondon Nigeria personnel to assist Seven Energy with the development of its existing production, processing and transportation assets and we will be represented on Seven Energy’s Board and management committees. The agreement also provides an arrangement between Petrofac and Seven Energy in relation to further co-investment opportunities in Nigeria. Has Nigeria always been a focus country for Petrofac? Yes, Nigeria is a market in which we have been trying to 1 Cameroon establish an ongoing presence for a number of years and 2 this opportunity to both co-invest and co-develop with aNameGraeme Jack well-respected partner will give us the platform to do so. Nigeria represents a long-term market with hugeTitleVP, developments, potential in mature onshore redevelopment and newSepta Energy 3 4 offshore finds. The country provides the scope forLocation Petrofac to deploy the full breadth of its capabilities fromLagos, Nigeria EPC contracting, operations support, training or further opportunities for Production Solutions presented by the maturing production base. However, our short-term focus will of course be on Chad mobilising a team to assist Seven Energy with the delivery of its key existing projects. Does Seven Energy own any oil & gas assets in Nigeria? Yes, Seven Energy’s activities are currently focused on two Septa Energy’s upstream interests core geographic areas of operation in the Niger Delta. It comprise interests in: has a 40% working interest in the Uquo field and a 51% 1. OML’s 4, 38 and 41 interest in the Stubb Creek field, both onshore assets and 2. The Matsogo field in OML 56 are currently under development. It also has an interest in the Matsogo field, which has not yet been approved for 3. The Uquo field in OML 13 field development. 4. The Stubb Creek field in OPL 276 Furthermore, Seven Energy recently entered into an alliance agreement with Nigerian Petroleum Development Company (NPDC) to provide technical support and development funding of NPDC’s interests in oil mining licenses 4, 38 and 41 in exchange for a profit sharing entitlement to NPDC’s share of the hydrocarbons produced.20