Petrofac Secures Further Gas Plant Project in Egypt

Source: 8/1/2008, Location: Africa

Petrofac has secured a further award from Khalda Petroleum Company (KPC). The contract, to provide engineering and procurement (EP) services for an additional gas train should convert to a lump-sum engineering, procurement and construction (EPC) contract on a pre-agreed basis. This will be KPC’s fifth gas processing facility (SGT5) to be built at Salam in the Western Desert area of Egypt and adjacent to the ongoing third and fourth Salam gas train facilities (SGT3 & SGT4) which are already being executed by Petrofac.

The award will include Front End Engineering and Design (FEED), EP services and procurement of long lead items. It is anticipated that this will be converted into a full lump-sum EPC contract within the next two to four months. The initial award will facilitate fast-track execution of SGT5 by making best use of Petrofac’s current mobilisation in the region and as a result the new train is expected to come on stream towards the end of 2010.

Commenting on the award, Maroun Semaan, chief executive, Engineering & Construction said: “We are delighted to have been awarded this contract. As with many of our FEED and EP contracts we anticipate being mandated to undertake a later construction project. Such contracts enable customers to access Petrofac's expertise before commissioning major work and demonstrate our ability to service energy facilities throughout their life cycle."

Commenting on the award for KPC, Warren Ford, General Manager & Managing Director said: “KPC is very pleased to award the fifth Salam gas processing train to Petrofac. The addition of SGT5 will bring KPC’s total gas processing capacity in the Western Desert to 810 million cubic feet (MMcf) of gas and 31,000 barrels of condensate per day, including access to gas processing at Shell’s Obaiyed plant.

Gas production from SGT5 before the end of 2010 is made possible through utilisation of Petrofac’s EP experience from SGT3 & SGT4, the significant construction resource mobilisation in place, and full application of the lessons learned in SGT3 and SGT4 construction.”

With SGT3, SGT4 & SGT5 Petrofac is now involved with the addition of some 300 MMcf of gas processing capacity per day for KPC and the KPC shareholders, Apache Corporation and the Egyptian General Petroleum Corporation.

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