Petrofac Enters 2013 with 'Record' Backlog

UK oilfield services firm Petrofac reported Wednesday that it has entered 2013 with a "record" backlog of orders in its Offshore Projects & Operations business, and that it continues to see high levels of bidding activity in both operations support contracts and offshore capital projects.

Announcing its final results for 2012, Petrofac also highlighted that it has a strong pipeline of bidding opportunities for onshore engineering and construction projects, particularly in the Middle East, Africa and the Commonwealth of Independent States (the former Soviet Union).

In its Integrated Engineering Services division, Petrofac said that this year it will be focused on delivering important milestones on several projects. The firm said it is making good progress on its transition activities on the Pánuco and Arenque contract areas in Mexico, where it expects to commence field operations during the first half of 2013. On Block PM304 in Malaysia, Petrofac expects to begin production from the West Desaru fault block and the second phase of the Cendor field during 2013.

Petrofac added that it is also seeing strong industry demand for commercially-innovative integrated oilfield services and that it is looking at a number of additional opportunities with both national oil companies and niche explorers.

Oil sector analysts at JP Morgan Cazenove commented that while Petrofac did not announce any new orders in its 2012 financial report, it hoped to see confirmed of the award of three large contracts this month. These include the estimated $500 million EPC-3 package on Sarb in Abu Dhabi, the $1.5 billion EPC-2 package on Upper Zakum in Abu Dhabi and the $1 billion Jurassic gas project in Kuwait.

In its results, Petrofac reported that its revenue for last year increased nine percent to $6.3 billion, while its net profit improved 17 percent to $632 million.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

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