Petrofac wins lucrative contract to update Oman oil refinery

25th Nov 2013 08:25

Petrofac, the FTSE 100 international oil and gas services provider, announced Monday that its 50/50 joint venture with Korean based Daelim Industrial has been awarded a 36-month Engineering, Procurement and Construction contract by Oman Oil Refineries and Petroleum Industries. The $2.1bn contract encompasses engineering, procurement, construction, start-up and commissioning services at the refinery in the Sohar Industrial Area. The contract includes improvements at the existing facility as well as the addition of new refining units. The refinery was originally constructed and commissioned in 2006 and Oman Oil Refineries is now investing in improvements at the site to enhance the current production capacity, Petrofac explained. When complete, it is anticipated that the revamped facility will increase current output by more than 70%.Subramanian Sarma, Managing Director of Petrofac's Onshore Engineering & Construction business, said: "Partnering with Daelim to deliver this project leverages our respective delivery capability for the refinery market, complementing our existing track record. "We have also been executing projects in Oman since 1988, having a detailed appreciation for the operating environment. Oman Oil Refineries is a new customer for us and we look forward to strengthening our relationship as the project progresses."Petrofac's share price jumped 3.22% to 1,229.39p in opening trade. NR