Petrofac to bag $100 million from two new contracts in India

Oilfield services provider Petrofac has secured two new contracts with Cairn Oil & Gas, Vedanta Limited, India’s largest private oil and gas exploration company with a combined value of approximately $100 million.

The new contract wins include Petrofac’s first significant Operations and Maintenance (O&M) contract in-country, the company revealed on Monday.

Selected by Cairn to provide integrated O&M services in support of its upstream oil and gas facilities, Petrofac will supply expertise at the Ravva oil and gas field in the Krishna Godavari Basin, in coastal Andhra Pradesh.

The duration of the contract is four years, with an option to extend by 12 months. The scope of work includes full O&M of the facility, including offshore platforms, subsea pipelines, and the onshore processing terminal.

Cairn has also selected Petrofac to undertake a lump-sum engineering, procurement, and construction (EPC) project to support the provision of well hook‐up and surface facilities for the Raageshwari Deep Gas (RDG) field, in Barmer, Rajasthan.

Executed on a fast-track basis, the main scope of work includes bringing online additional wells, augmentation and modifications to handling and treatment facilities including electrical, instrument control, and safety and protection systems.

This follows a previous lump-sum EPC contract, valued at approximately $233 million, which Cairn awarded to Petrofac in April 2018 for its RDG Field Development Project. This was completed, with the plant’s 72-hour Performance Guarantee Test Run in June 2021.

Nick Shorten, Chief Operating Officer for Petrofac’s Asset Solutions business said that the contracts will be supported by the company’s engineering centres in Chennai and Mumbai.

Speaking on the contracts, Prachur Sah, Deputy Chief Executive Officer, Cairn Oil & Gas, Vedanta Ltd., commented: “We are confident that this partnership will further strengthen our execution and operational excellence, enabling us to actualise our vision of adding 500 kboepd and doubling domestic crude production capacities.”

In related news, less than two weeks ago, Petrofac was awarded a five-year contract extension for well management and well operator services with NEO Energy. Under the extension, Petrofac will provide a five-year framework for well management and well operator support for 27 wells across the Affleck, Balloch, Dumbarton, Lochranza, and Finlaggan fields located in the UK North Sea.