Petrofac secures lucrative Romanian contract

12th Jul 2010 07:15

Oil industry services giant Petrofac has won its first production enhancement services contract in Romania after tying up a deal with Petrom, which owns the Ticleni oilfield and its eight satellite fields.Petrofac will provide production enhancement services to Petrom, Romania's biggest oil and gas company, as part of an initial 15-year contract, which begins immediately and includes an option for extension by a further 10 years.Around 300 of the 1,000 wells at the Ticleni onshore field in South-western Romania are currently producing a total of some 4,500 barrels of oil per day. It's hoped Petrofac will help increase production through improving recovery rates, optimising operational efficiencies and upgrading the facilities. The company will be paid a tariff per barrel of oil produced, including an enhanced tariff for incremental production. It will book the initial five years' of estimated contract revenues, worth $270m, into backlog, $270m. This key performance indicator is used as a measure of the visibility of future earnings.