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Saturday, 30 August, 2008, 12:00 GMT | more prices >>

Petrofac bags $477m Syrian gig



By Upstream staff 

British-based engineering group Petrofac said today that it had won a $477 million lump-sum deal from Petro-Canada to build a gas treatment plant for the Ebla project in Syria.

The Ebla plant will be designed to produce 88 million cubic feet of sales gas per day and 150 tonnes of liquefied petroleum gas per day.

"This is another significant award in Syria for Petrofac which, taken together with the Jihar gas plant award, provides us with almost $1 billion of work in a country where we have successfully worked on a number of projects," Maroun Semaan, chief executive of Petrofac Engineering & Construction, said in a statement.

Under the deal, Petrofac will take a 10% stake in the Ebla production sharing contract.

"This is good news for the company," Reuters reported Seymour Pierce analyst Peter Hitchens saying in a note. "However, we are concerned over the group wanting to take a 10% stake in the project".

"The management wants to build up the Energy Development business by bringing its engineering skills to progress upstream projects. However, we are concerned if this will add much shareholder value, given that the company will only be a minority partner in this project," Hitchens added.

Petro-Canada is the operator of the Elba project, which is expected to start production in 2010.


Friday, 04 April, 2008, 08:11 GMT  | last updated: Friday, 04 April, 2008, 08:11 GMT

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