Petrofac Wins Contract For Elba Gas Treatment Plant
UK-based oil and gas services company Petrofac announced in a company statement on 4 April that it had won a $477mn lump-sum contract from Petro-Canada to construct a gas treatment plant for the Elba project in Syria. Petro-Canada is the Elba operator with a 100% interest in a production-sharing contract (PSC) to develop and produce natural gas from the Ash-Shaer and Cherrife fields, with first gas scheduled for delivery in 2010. The Elba plant will be designed to produce 88mn cfd of sales gas and 150 tons/day of liquefied petroleum gas, and handle the associated gas. Sales gas and condensate will be fed into the Syrian pipeline network and LPG will be transported via tankers, Petrofac said. The plant will be located in the Ash-Shaer field between Homs and Palmyra, and the initial contract, which will last just over two years, will include all associated facilities and infrastructure, including engineering, procurement and construction, commissioning and start-up assistance of the gas treatment plant, pipelines, gas gathering station flow lines and well sites.
Petrofac also said in its statement that subsequent to the contract award, its Energy Developments division agreed in principle with Petro-Canada to purchase a 10% interest in the Elba PSC, subject to the approval of the Syrian government. Petro-Canada in 2006 acquired from a subsidiary of Marathon Oil Corporation a 90% interest in the latter’s PSC in the Ash-Shaer and Cherrife gas fields (MEES, 6 November 2006).
This is Petrofac’s second contract in Syria within a month. In March, it signed a letter of intent with Hayan Petroleum Company for a €291mn lump-sum contract for a gas treatment plant at the Jihar field in the Hayan Block (MEES, 24 March). Commenting on the Elba project contract, a Petrofac executive, said “this is another significant award in Syria which taken, together with the Jihar gas plant award, provides us with almost $1bn of work in a country where we have successfully worked on a number of projects.”
Copyright MEES 2008.
