Petrofac Gets Production Enhancement Pact By Petrom In Romania

12th Jul 2010 07:06

LONDON (Dow Jones)--Petrofac Limited (PFC.LN), an international oil and gas facilities service provider, said Monday it has been awarded a Production Enhancement services contract by Petrom in Romania. MAIN FACTS: -Petrofac's Production Solutions business will provide production enhancement services to Petrom as the concession holder for the Ticleni oilfield and its eight satellite fields (Ticleni). -The initial 15-year contract, which includes an option for extension by a further ten years, is effective immediately. -Ticleni, a mature onshore field which has been operating for some 60 years, is located in South-western Romania and has more than 1,000 wells, of which around 300 are currently producing a total of 4,500 barrels of oil per day. -Petrofac will provide a range of services to increase production through improving recovery rates, optimize operational efficiencies and invest to upgrade the facilities. -Petrofac will be paid a tariff per barrel of oil produced, including an enhanced tariff for incremental production. -Petrofac will manage all aspects of the fields' activity on behalf of Petrom, including the responsibility for the employees currently working in Ticleni, who will be transferred to Petrofac under the terms of the contract. -Petrofac will book the initial five years' of estimated contract revenues into backlog in relation to this contract, which equates to $270 million. -Shares closed Friday at 1236.0 pence. -By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires July 12, 2010 02:06 ET (06:06 GMT)