Petrofac secures $350m technical services contract from GEPetrol

Petrofac Limited, a global leader in providing services to the energy sector, has secured a significant Technical Services Contract worth approximately $350 million from Compañía Nacional de Petróleos de Guinea Ecuatorial (GEPetrol). The five-year contract involves providing a broad range of technical services to support the operation of Equatorial Guinea’s Block B asset, marking a strategic expansion of Petrofac’s footprint in Africa.

Under the terms of the contract, Petrofac will manage a diverse suite of services including operations, maintenance, asset integrity, integrity management, marine services, well engineering, project delivery, and supply chain management. These services will be delivered across onshore support bases, a floating production storage and offloading (FPSO) unit, and a platform, with Petrofac acting as the Operator on behalf of GEPetrol.

The contract announcement follows Petrofac’s initial engagement in transitioning the asset from Mobil Equatorial Guinea Inc (MEGI), which underscores the company’s commitment to enhancing local capabilities and retaining key personnel and contractors familiar with the operations. This approach is aimed at ensuring continuity and leveraging existing expertise and knowledge of the assets.

Nick Shorten, Chief Operating Officer of Petrofac’s Asset Solutions business, expressed enthusiasm about deepening the partnership with GEPetrol: “We look forward to developing our relationship with GEPetrol further, collaborating to extend the life of the field to build a legacy of energy independence and sustainable growth for Equatorial Guinea. This award is an excellent example of our strategy in action: selectively growing our geographic footprint and driving value for our clients through late life asset optimisation.”

Antonio Oburu Ondo, Equatorial Guinea’s Minister of Mines and Hydrocarbons, highlighted the strategic national implications of the partnership: “Our vision is to create a fully capable nationally-operated oil and gas company to manage our assets. Today, I am proud that our vision is becoming a reality.”

Teresa Isabel Nnang Avomo, Director General of GEPetrol, also commented on the importance of this milestone: “Today’s contract signing marks a key milestone in our journey to becoming Operator of Block B on 1 June 2024. We are excited to grow our partnership with Petrofac. By unlocking the huge potential of our indigenous national workforce, we will build with Petrofac’s assistance, an organisation for the long-term management and development of our country’s oil and gas assets.”

The contract’s effectiveness is contingent upon several conditions precedent, including the completion of transition arrangements with MEGI and necessary governmental and legislative approvals in Equatorial Guinea. Petrofac anticipates a further announcement once these conditions have been met, at which time this contract will be included in the Asset Solutions backlog.

This contract represents a strategic step for both Petrofac and GEPetrol as it not only solidifies Petrofac’s presence in Africa but also supports Equatorial Guinea’s ambitions to manage its oil and gas assets through a national company. It underscores the importance of local capability development and international partnerships in the oil and gas industry, particularly in resource-rich regions like Africa.