News

Petrofac to provide Duty Holder Services for Sharjah Government

11 October, 2010

Petrofac, the international oil & gas facilities service provider, has been awarded a contract by the Government of Sharjah, to take over operational responsibility and facilities management of the Sajaa Gas Plant and related assets, located approximately 30km from the commercial centre of Sharjah, UAE. The five-year contract was awarded following a competitive open bidding process and is worth in excess of US$250 million.

The Government of Sharjah, acting through the Sharjah Petroleum Council, holds a 60% participating interest in the Sharjah gas and associated liquids Concession. BP currently holds the remaining 40% and is the Operator of all Sharjah Concession petroleum operations, together with the Sajaa gas processing plant and associated storage, pipelines, condensate export terminal and Shalco LPG facilities. The Concession will expire in November 2013 and the Government of Sharjah and BP are actively working together on assuring a smooth transition of the BP-operated facilities to the Government.

Petrofac, through its Offshore Engineering & Operations (OE&O) business unit, has been awarded the Duty Holder contract to provide a full range of facilities management services to the Sharjah Government including: reservoir management, drilling and well services, plant operations and engineering and project management.

By the end of 2010 Petrofac will assume control of the operations while the Government of Sharjah will become the Concession Operator. During the transition programme, around 130 personnel, currently involved in running the operations, will transfer to Petrofac.

Bill Dunnett, managing director of OE&O, said: “I am delighted to announce this contract with the Government of Sharjah which further consolidates Petrofac’s position in the Emirate and the Middle East. Petrofac has a long established portfolio of managed facilities in the UK sector of the North Sea, where we pioneered the Duty Holder model. This expertise, combined with the group’s substantial existing operations in the region, means that we are well equipped to deliver a strong outcome on this contract for the Government of Sharjah and BP. Our focus will be on a safe and effective transition, and asset performance and integrity.”

Sheik Sultan Bil Ahmed bin Sultan Al-Qassimi, deputy chairman of Sharjah Petroleum Council said: “I look forward to working with the Petrofac team as they work towards continuous improvement of safety and operational performance at the plant and its associated assets. Appointing Petrofac before the end of Concession allows for a smooth management of change to be carried out while BP is still present as an equity holder in the concession.”

Abdulkarim Almazmi, President and general manager of BP Sharjah, said: “Petrofac’s track record demonstrates that it has the capability to ensure the uninterrupted, safe and reliable operation of the facilities, while we transfer Operatorship to the Government of Sharjah prior to the end of Concession in 2013.”