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.

1. February 2011 | petrofac.com
The winning image from our photography competition

2. February 2011
in 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 far
Petrofacts is designed and published by
Petrofac on a quarterly basis. To provide
comment or contributions please contact:
Corporate Communications
06
Hazel Meldrum/Claire Baxter
editor@petrofac.com
Engineering & Construction
Engineering & Construction Ventures
Engineering Services
Kaye Krause-Whiteing
kaye.krause-whiteing@petrofac.com
Offshore Engineering & Operations
Jilly Powell Picture Petrofac winners
announced
jilly.powell@petrofac.com
Training Services
Ivana Petrovich
ivana.petrovich@petrofac.com
Production Solutions
Energy Developments glossary of abbreviations
Elinor Geary E&C E&CV EPC ERSC FEED FDP
elinor.geary@petrofac.com
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
Organisation
2

3. petrofac.com
10
Turkmenistan project
moves into second
08
phase
Petrofac has commenced work on the next stage
of the South Yoloten project
Syria: country focus
We look back at our success in the country
during 2010 17
TEMPO roll-out
success
New enterprise resource planning system
launched in Malaysia and India
20
18 Enhanced presence in
Nigeria
OE&O business Strategic alliance formed with Nigeria’s Seven
spotlight Energy
Contract highlights and engineering
26
opportunities
Board and
management changes
Appointments enhance senior management team
and Board
30 35
Singapore training
Environment month centre
Our teams celebrate third successful
environmental initiative Awarded ‘A’ grade in quality assessment
3

4. February 2011
WelCoMe to our first 2011
eDition of PetrofaCts.
this edition co-incides with the
30th anniversary of the group and
inside you will find an interview
with some of Petrofac’s founders
which charts the group’s history
and progress so far.
4

5. petrofac.com
Looking back on 2010 I am delighted to say it was another
exceptional year for our group. We closed the year with record
backlog and we continue to see strong growth potential in 2011
and beyond.
It is gratifying to continue to win business with existing customers
in geographies we know well. We were recently awarded our sixth
EPC project In Algeria to develop southern fields in the In Salah
development on behalf of In Salah Gas.
As we go to print, I have just returned from a trip to Kuala
Lumpur where I attended a signing ceremony hosted by our valued
customer PETRONAS for a US$800 million Risk Service Contract
for the Berantai field development. Just at the close of the year we
announced that Petronas Carigali Sdn Bhd had awarded Petrofac
a US$280 million contract to provide EPCIC services for the SEPAT
offshore early production system on the east coast of Malaysia.
When taken in combination with the phase II development of the
Cendor field, Petrofac is now managing projects in Malaysia worth
in excess of US$2 billion. This is a remarkable achievement and
further details of both of these new developments can be found
inside this edition.
During 2010 we were awarded a number of important contracts
for new customers expanding our geographic footprint; such as our
15-year production enhancement contract in Romania with Petrom,
and the second phase of the South Yoloten project in Turkmenistan
worth US$3.4 billion. In line with our co-investment strategy, we took
a 20% interest in Gateway Storage Company Limited and invested
in 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 the
UK 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 acquisitions
during the year and two of these - CO2DeepStore and TNEI Limited
– have enabled us to create ‘Petrofac new energy’ to service the low
carbon and renewable energy sectors.
Amidst this, we have continued to focus on developing and
maturing our internal business processes and launched ‘TEMPO’
our tailored Oracle ERP system, in Chennai, Mumbai and Kuala
Lumpur with more roll outs planned for during this year. 2010
was also the ‘year of integrity and quality’ across our engineering
businesses and you can read about our progress on page 22.
We have continued to recruit and grow our teams, especially at
a senior and functional level and we have been joined by a number
of key individuals across the business. In January we welcomed
Andy Inglis to Petrofac as chief executive of Energy Developments
and Production Solutions. Andy will also join our Board on 1 March
2011. Further details on Andy and our other recent Board changes
can be found on pages 26 and 27.
Overall 2010 has been a fantastic year for Petrofac and I am
confident that we can look forward to bright prospects for 2011 and
beyond.
I hope you enjoy this issue.
Ayman Asfari
Group Chief Executive
5

6. February 2011
Cover story
PICTURE PETROFAC
the Winners
Following a much anticipated wait, at the beginning of November we announced our
overall 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, Maroun
Bay 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 12
Along 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 Emirates
2. Jim Kelly, Kuala Lumpur, Malaysia Emirates 9. Guillaume Roux, Woking, England
3. Nasrum Mohamad, Kuala Lumpur, Malaysia 6. Bill Boyter, Aberdeen, Scotland 10. Robert Marks, London, England
4. 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 Emirates
6

7. petrofac.com
suCCess in Malaysia
PETROFAC SECURES TWO NEW
CONTRACTS 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 in
Risk 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 Berantai
Contract partners will receive a rate of return linked to their performance
against an agreed incentive structure, including project costs, timing
to 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 undeveloped
Petrofac Energy until now. Petrofac, Sapura and Kencana - together the Berantai
Developments announced partners - will develop the field and subsequently operate it for a
in 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 Developments
companies SapuraCrest local partners, Kencana and Sapura, both of whom bring unique
and 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 excited
Contract (RSC) with the floating production storage and offloading (FPSO) vessel, is about this project
PETRONAS, the Malaysian
National 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 working
lead the development of will be developed, Jewkes added: “The fast-track field development once again with
the 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, a
in Block PM309, offshore wellhead platform expected to be installed in a subsequent phase. customer we know
Peninsula 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. February 2011
SYRIA
Country foCus
Together with our customers and partners, Petrofac achieved a number of successes in
Syria during 2010. The Ebla gas plant was completed ahead of schedule, hydrocarbons
were successfully introduced to the Jihar gas plant and we created a new national
technical training centre and donated it to the country’s Government.
In October, Petrofac took a group of around attended together with representatives
50 of our investors and financial analysts from our customers and in-country
to Syria in order for them to see some of suppliers, including long-term in-country
these projects firsthand. construction partner LEAD.
Hosted by Petrofac’s senior and in- Early the next day the group travelled
country management, the three-day two and a half hours north to the Homs
investor trip required military-style timing in area, to the country’s first technical training
order to ensure the ambitious programme centre which has been refurbished and
could be achieved. equipped by Petrofac. The centre, which
Day one started in the ancient capital, had been open and operational for only a
Damascus. After receiving a presentation matter of days prior to the visit, was officially
on Petrofac’s Energy Developments inaugurated by His Excellency Mohammad
business from executive VP business Naji Ottri, and after completing a tour of the
development and technical services, facility, led by Petrofac Training Services’
Gavin Graham, the group attended a head of strategy, Karim Osseiran, guests
prestigious dinner, hosted by Petrofac with were given the opportunity to find out more
guest of honour, Syria’s Prime Minister, about the Training Services business from
His Excellency Mohammad Naji Ottri. A managing director, Paul Groves.
number of other senior Ministers including The group then departed to the nearby
the 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 by
Petroleum, 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. petrofac.com
PROJECT FOCUS: PROJECT FOCUS:
the national training Jihar gas Plant
Centre suPPorting the introDuCing hyDroCarbons
DeveloPMent of syria’s anD Celebrating key safety
WorkforCe Milestone
The National Training Centre, which opened During November our Jihar project
its doors to students in September, forms with Hayan Petroleum Company (HPC)
part of the Syrian Government’s commitment successfully introduced hydrocarbons into
to develop competent personnel for the the gas plant.
growing oil & gas sector. The centre was
refurbished and equipped by Petrofac Commenting on this important development, Maher Mustafa, Jihar
project director said: “During November the project team of HPC
and donated by the group to the Syrian and Petrofac celebrated achieving mechanical completion and the
Government. 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 this
The training centre, the first of its kind in the country, provides project where seven million man-hours have been completed
competence-led training to the workforce of General Petroleum without a Lost Time Incident (LTI). Mustafa explains: “This HSE
Corporation, the parent company of the Syrian Petroleum and performance has been down to the meticulous attention paid to
Syrian Gas companies. Designed by Petrofac’s Training Services safety through all aspects of the planning, design and execution of
business, the facility has been built on a brownfield site near Al the project. This was evident throughout the project and the results
Bisa, 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 the
programme starts with three months of technical English language project, and will be completing the performance testing in order to
training followed by nine months of technical training incorporating hand over the plant fully to Hayan Petroleum Company in the early
the electrical, mechanical, instrumentation and production part of 2011.”
disciplines.
Self-sufficient in five years
The centre will be operated by Petrofac Training Services for five
years. It is currently staffed by a 30-strong Petrofac-led team
including nine expatriate instructors, but over time all instructors
will be local, as Paul Groves, managing director of Petrofac Training
Services explains: “We have applied our knowledge and experience
to design and develop the centre and for the next five years we will
provide the operations support for the facility. During this time,
we will be recruiting, training and developing local instructors and
managers to create a sustainable facility where Syrian students are
being trained exclusively by Syrian instructors by 2015.”
An unrivalled offering
The ability to offer world-class training either through the network
of Petrofac’s training facilities, or through the creation of bespoke
in-country sites is a fundamental part of Petrofac’s differentiated
offering. By including the training and ongoing development of
local staff within the wider EPC projects, governments and national
7 million
oil companies can benefit from increased efficiencies and reduced
training expenditure while improving their workforce competence
and increasing their levels of local content.
The number of LTI free man-hours completed
during the Jihar project so far
9

10. February 2011
ProJeCt 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 Ventures
Key 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 Ashgabat
10

11. petrofac.com
PetrofaC’s story
THE NExT STAGE
OF THE JOURNEY...
PETrOfaC Marks iTs 30th yEar in continued overleaf >
BusinEss On 26 fEBruary 2011
11

12. February 2011
> continued from overleaf
Petrofacts has been talking to
those responsible for the creation
of the company and the inspiration
behind its 30-year journey. Group
chief executive, Ayman Asfari will
also mark his 20th year with the
company in 2011; he believes the
building of Petrofac has truly been
a team effort.
At the end of 2010 as he accepted the Ernst &
Young UK Entrepreneur of the Year award, Ayman
Ralph Martin Ayman Asfari
Asfari thanked all of the 13,000 people within
Petrofac, dedicated the award to them all and said
he was ‘simply the public face’ of the group.
At Petrofac’s Leadership Conference in
November Asfari reflected on the group’s journey
and his vision for the future. He cited a number
of early events and the people who influenced
him and the future direction of the group as being
instrumental in its subsequent development and
success.
It’s no surprise that top of his list was Maroun
Semaan, 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 1991
industry 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 Petrofac
Inc, a producer of modular plant based in Tyler, International
Texas. 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 the
founders 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 a
time, said: “We had worked successfully with ate it with your right hand. customer or shareholder
Ayman’s previous company on a project in Oman, • watching a new recruit blossom and grow
and I was introduced to Ayman through a senior Toughest challenge: inside Petrofac
colleague at Occidental. Ayman then introduced 1981 was a terrible year in the oil business
me 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 no
venture 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 the
wanted 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 doubt
believe Petrofac would go on to enjoy such the toughest decision I have ever had to
tremendous growth and success? “If I had, I make
would 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 but
friends. I respect and admire him immensely. We the establishment of Petrofac International in July our potential for continued growth is still
each 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 Ayman
discussing 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 officer
East-based engineers, who knew each other but in 2003 but rejoined in 2010: “Prior to establishing and remembers the time well: “The sleepless
had never worked together, formed an alliance the joint venture, Petrofac’s US business was nights revolved primarily around how to bid and
with a US business with an established business built around our fabrication shop. Our innovative execute larger projects, and we took on any
model 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 came
discussions, “I joined Petrofac International Lou Owen and Ralph Martin. When I joined there close to failure in 1984, when we engineered
officially 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 in
began much earlier. Ayman and I first came to workforce including the fabrication shop was bankruptcy. We had invested most of our working
know 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 were
were working for different organisations in Oman, we all wore lots of different hats.” at the mercy of the bankruptcy courts. Fortunately
sometimes competing against each other for Like many new businesses, it took a number the project was not complete at the time when the
work 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 were
strong ambitions to set up an oil & gas contracting it had a robust pipeline and good revenue visibility. able to negotiate a payment that returned most
12

13. petrofac.com
of our investment in exchange for committing to
complete the project.”
It was through this continued search for growth
Maroun Semaan Lou Owen
and development that the idea for the creation of
Petrofac International came, but it was met with
some strong opposition. The US founders were
nervous about the deal and if it had not been for
Ralph Martin’s belief in the duo it may never have
gone ahead.
Hendrickson continues: “Most of us had heard
of Ayman from the Oman project we had worked
on, but only Ralph had actually met him. So when
Ayman came to Tyler and made a very positive
yet aggressive presentation on the business
plan we were somewhat sceptical that a newly
formed company could achieve success and be Joined Petrofac: Joined Petrofac:
awarded major contracts as rapidly as Ayman was 1 September 1991 1 January 1982
predicting. 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 engineering
arrangement, recognising that it would be better
to 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$1 Proudest moment: Proudest moment:
million, funded equally between the US business There have been many events of which I am Formation of Petrofac International. I always
and AMcorp. The management team realised immensely proud. Each was at the time, and felt it was going to be a positive development.
that no further funds would be forthcoming so continues to remain, significant to me as
it was imperative to build strong foundations we take the business forward. Our four EPC Toughest challenge:
project wins in 1992 allowed us to kick start The early days were challenging as we never
for the business quickly. In the early weeks and knew if we were going to be able to pay the
months efforts were focused entirely on business the company and this was a fantastic and
challenging period for the whole team with a bills or not but selling the US business was
development. Early breakthroughs came in the continual succession of projects thereafter. the toughest decision.
form of some relatively small contracts (circa US$ At a personal level, my proudest moments
6 - 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 remaining
dwindling rapidly, the business needed to secure So the stage was set, the company was
competitive, growing an enduring business
larger 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 in
Oman Crude Stabilisation (NOCS) project for challenge that makes it exciting for me to get order to start to realise the company’s vision. “We
Petroleum Development Oman (PDO). There was out of bed every day and work with our teams had the determination to pursue, win and execute
a problem, however, as Petrofac International to ensure we remain successful. large lump-sum projects – a challenge which many
did not have the financial muscle to take on, Which one word or phrase would you use to contractors still avoid today! We realised from the
what 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 we
project. Undeterred the team turned to Galfar, A journey of excitement, passion and hard first had to be based close to our customers.
one 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 the
necessary financial strength and the JV was highest calibre that could execute and manage
prequalified 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. 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. petrofac.com
“It would be easy to feel satisfied
with what we have achieved and to
simply coast along, but I believe that
complacency, above all things, is the
quickest 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 & construction
Greg 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. February 2011
> continued from overleaf
So what do Ayman Asfari and Maroun Semaan
think of this company they built 20 years on and
what does the future now hold for Petrofac?
“Ensuring we have an enduring and efficient
business with clear targets and objectives which
are well understood by our management without
diluting the prevailing entrepreneurial culture will
be critical to success,” says Semaan. “Back
in 1991 the board had a consistent vision for
continued growth and success underpinned by
our passion and commitment to delivery for our
customers and to attract the best talent on board,
a vision that we continue to live by today. The
entire energy sector is constantly evolving and we
have to take considered, strategic measures to
ensure we can change with it, remain innovative
in our approach - technically and commercially -
and instil the same set of values as new people
continually join our organisation.
“At a personal level, I am extremely passionate
about what we do but I am certainly not alone
in that. There is a high degree of commitment,
loyalty and dedication running through our
business which is very powerful and, as we grow,
we need to ensure that remains as alive in 30
years time as it was in 1981, 1991 and today.
“Looking back at the journey and with
hindsight, most of us would do many things
differently, however, I relish my life’s journey and
have soaked up every experience along the way.”
Asfari concludes with his thoughts on the
journey so far and the next instalment:
“The hard work and dedication of many
exceptional people combined with some good
fortune has brought us to this point, and we can all
Gordon 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 individual
16

17. petrofac.com
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 TEMPO
Name in India and Malaysia could not have been
Mohan Narasimhan accomplished if it were not for the unwavering
Title efforts of the ERP teams and all individuals
Group chief involved in this two-year project. Energy
information officer Developments’ finance manager for the
Location Malaysian business, Jeffry Ahmad, is one
Sharjah 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. February 2011
business 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, Petrofac
OE&O will develop the 500 million standard cubic feet per day
gas processing plant on behalf of Total. The project comprises
engineering and procurement (on a lump-sum basis) and supply,
construction, commissioning and start-up (on a combined
lump-sum and reimbursable basis). The plant will facilitate the
transportation of gas from the Laggan and Tormore fields, which lie
125km North-West of the Shetland Islands, to the Total operated St
Fergus Gas Terminal in Aberdeenshire.
Significant milestone
Maroun Semaan, Petrofac’s group chief operating officer,
commented: “We are pleased to have been awarded this important
contract with Total, a major international customer for our group.
The contract, which has been secured following an extensive
project definition and competitive bidding process, forms part of
the strategic growth plan for the OE&O business and marks our
first EPC contract in the UK.”
Bill Dunnett, managing director of OE&O, said: “This
announcement represents a very significant milestone for the Alex Hosie, project director, OE&O, outlined our commitments
OE&O business. We have mobilised an excellent project team to the local area: “As a business we’re expert in dealing with
focused upon delivering the project objectives, while ensuring complex projects in remote locations. We take that expertise to
we respect both the location and the environment, and to work Shetland alongside a respect for and dedication to protecting
alongside 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-based
Local engagement supply chain, will bring more people to the island and ultimately
increase spending in the area. We are dedicated to ensuring that
Total’s gas terminal will be developed on land adjacent to BP’s the people of Shetland are positively impacted by this development
existing facility at Sullom Voe. The area is one already synonymous and we will work with them to ensure a legacy that continues to do
with 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 embarked
on a significant programme of consultation and engagement with Thinking differently
the Shetland community to ensure that the operations teams from
both Total and Petrofac work harmoniously within the community. A unique aspect of the project will see the team maximising the use
These teams will form a key part of the local landscape for almost of modularised components allowing the plant to be developed
four years and Petrofac intends to maintain these high levels of mainly offsite and therefore helping to overcome the remote
engagement 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 gas
project and Petrofac has engaged an environmental consultant anticipated in Q2 2014 a project team has been deployed to
expert on the Shetland ecology to guide and support the project Sharjah to begin initial engineering works. Construction work is
team throughout the build. expected to begin later this year.
18

19. petrofac.com
OE&O growth plan delivers
Following the recent success of the Laggan-Tormore contract award, Petrofac
OE&O has also announced a new three-year agreement worth £40 million with
Maersk 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&O
Following a number of recent contract awards for Petrofac OE&O, Petrofacts
caught up with Jim Lenton, projects director for OE&O, to talk about plans to
expand 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 a
Jim Lenton We are looking for talented engineers and designers to add value clear strategy for growth outside the UK. As a financially strong
Title to our expanding service offering and every person within OE&O player, we can bid for lump-sum contracts that would be beyond
Projects director, plays a vital role in achieving the end goal. Our engineers come some of our competitors. It is definitely empowering to be part
OE&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 the
Aberdeen 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. February 2011
Country exPansion
PETrOfaC fOrMs sTraTEGiC
aLLianCE WiTH niGEria’s
sEVEn EnErGy
In November, Petrofac announced that it had entered into a strategic alliance with Seven Energy
International Limited (Seven Energy), a leading Nigerian production and development company.
The transaction will allow Petrofac to establish an ongoing presence in country and provide an
opportunity 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.
Name
Gordon East
What exactly does this strategic alliance mean for
Title Petrofac?
Managing director,
Production Petrofac has invested US$100 million, funded from cash
Solutions resources, to acquire a 15% interest in Seven Energy.
Location As part of the agreement we are providing experienced
London 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 a
Name
Graeme Jack well-respected partner will give us the platform to do so.
Nigeria represents a long-term market with huge
Title
VP, developments, potential in mature onshore redevelopment and new
Septa Energy 3 4 offshore finds. The country provides the scope for
Location Petrofac to deploy the full breadth of its capabilities from
Lagos, 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