Petrofac News 1700X397
11 July 2016

Berantai RSC - agreement with PETRONAS

Petrofac today announces that Petrofac Energy Developments Sdn Bhd and its partners, Kencana Energy Sdn Bhd and Sapura Energy Ventures Sdn Bhd, have reached mutual agreement with PETRONAS for the cessation of the Berantai Risk Service Contract (RSC).

With the cessation of the RSC, which will be effective on 30 September 2016, PETRONAS will reimburse the balance of outstanding capital and operational expenditures to Petrofac (1)(3) and its partners over the period to June 2017. As part of the arrangement the ownership of the Berantai FPSO will be transferred to PETRONAS (2)(3).

The Berantai RSC was the first RSC awarded by PETRONAS to Petrofac Energy Developments Sdn Bhd and its two local partners on 31 January 2011. Since then it has co-invested in the development of the Berantai field and been responsible for its operation and maintenance. Petrofac will use the cash proceeds for general corporate purposes.

(1) As disclosed in note 16 of Petrofac’s 2015 Annual Report and Accounts (page 148), the receivable due under the Berantai RSC was US$357 million as at 31 December 2015. The gross assets as at 31 December 2015 were US$536 million which includes Petrofac’s and First Reserve’s proportion of the FPSO. Profits attributable to the field during the year ending 31 December 2015 were US$1 million. As part of the original agreement, PETRONAS could elect to end the RSC early, ahead of the scheduled end date of 2020, depending upon the economics of the project.
(2) The Berantai FPSO is owned by Berantai Floating Production Limited in which Petrofac has an indirect interest through PetroFirst Infrastructure Limited.
(3) As a result of the cessation of the RSC and the FPSO transaction, Petrofac will incur a small impairment charge