Financial and commercial models

Our delivery is underpinned by a range of innovative commercial models, which enable us to respond flexibly to the different needs of our clients.

  • Lump-sum turnkey: where we are remunerated on a fixed-price (lump-sum) basis and our clients get clarity of cost and schedule from the outset. This is an ideal solution for well-defined projects, as evidenced by the hundreds of lump-sum turnkey projects we’ve completed in the last three decades.

Example: El Merk Central Processing Facility, Algeria

  • Reimbursable services: where the cost of our services is reimbursed by the client plus an agreed margin or based on a schedule of rates. Under this model, our clients manage more of the risks of delivery and retain more control.

Example: Al Taweelah project, Abu Dhabi

  • Cost plus KPIs: reimbursable with a margin linked to the successful delivery of key performance indicators. This creates alignment between client and contractor.

Example: Anasuria, UK North Sea

  • Production Enhancement Contracts (PECs): where we earn a tariff per barrel for enhancing oil and gas production above an agreed baseline.

Example: Arenque, Mexico

We continue to work towards migration of our PECs to equity contracts in Mexico. In December 2017, we migrated the Santuario PEC into an interest in a Production Sharing Contract (PSC).

  • Traditional equity upstream investment models, including PSCs and concession agreements: where we take a direct interest in a field or block alongside our client.

Example: Greater Stella Area development (GSA), UK North Sea

Contact us to find out more about our financial and commercial models.