Middle East agreement for oil firm
‘Landmark’ Oman deal eases Petrofac’s woes
Troubled oil services company Petrofac has received a boost by securing a long term deal in the Middle East.
It has signed a 10-year Framework Agreement with Petroleum Development Oman for the provision of engineering, procurement and construction management support services for major oil and gas projects.
The agreement, which has an additional five-year option, builds on a three-year programme for PDO. Future projects undertaken through the deal will be supported by Petrofac’s Muscat office.
Craig Muir, a group managing director at Petrofac, said: “This is a landmark agreement between our two companies and marks a new level of collaboration between PDO and Petrofac.
“It builds upon a long-standing relationship which spans more than two decades and encompasses a significant number of projects undertaken in Oman on both a lump-sum and reimbursable basis.
“Our priority will be to deliver quality oil and gas facilities that are technically robust, with an absolute focus on safety and in-country value.”
Petrofac is currently undertaking two projects, on behalf of PDO.
The agreement comes after director Marwan Chedid was suspended and an outside consultant appointed as a fraud investigation is carried out by the Serious Fraud Office.
The SFO launched an inquiry last month into the company, related to activities surrounding Unaoil and other agents.
The company said the suspension was among a number of decisions taken to ensure Petrofac “can retain its focus on its operations and clients, whilst also ensuring the company is able to continue to engage with the SFO’s investigation.”