Petrofac Acquires CO2 Storage Business

Petrofac, the international oil & gas facilities service provider, confirms that it has acquired CO2DeepStore Limited (CO2DeepStore) a UK-based CO2 storage company.

Established in 2007 in Aberdeen, Scotland CO2DeepStore is focussed on the CO2 geological storage sector of the carbon capture and storage (CCS) market. The executive management team of the business will join Petrofac as part of the agreement.

CCS is a rapidly developing sector and involves the capture of CO2 from major emissions sources such as coal and gas fired power generation facilities, LNG and gas processing plants. The resulting CO2 is safely transported and permanently stored deep underground in depleted gas reservoirs or saline aquifers.

As part of the Petrofac group, CO2DeepStore will accelerate its plans for growth and development, while the acquisition represents Petrofac’s first step into the low carbon energy sector. There are many synergies between the CO2 transport and storage business and Petrofac’s Offshore Engineering & Operations and Energy Developments businesses. The combination of the two organisations establishes a leading development capability for CO2 storage projects, providing a complete storage service for power generators and other CO2 emitters.

Robin Pinchbeck, Petrofac’s group director, strategy and corporate development, commented: “The storage of CO2 is an important part of the emerging low carbon energy mix and we are excited about the potential opportunities for our group in this sector. We are very pleased to welcome Alan and his team to Petrofac and look forward to working with them to progress our plans.”

Alan James, managing director, CO2DeepStore said: “The combination of Petrofac’s financial strength and development capability together with our specialist knowledge and experience will help to position CO2DeepStore as the leading CO2 storage project developer in this new sector servicing the requirements of the major emitters who are establishing CCS projects.”