Petrofac scoops more work with BP

Oilfield services provider Petrofac has won a three-year extension to its existing maintenance contract with oil major BP.

Petrofac said on Tuesday that the two companies had also signed a new four-year metering contract.

The metering services contract includes on and offshore consulting and support services. According to Petrofac, it will continue to harness digital technology to drive improvements and increase efficiencies for BP.

As far as the maintenance agreement is concerned, Petrofac will continue to provide campaign inspection and maintenance services on BP’s North Sea assets, many of which Petrofac has supported for the last decade.

It is worth noting that Petrofac worked with BP to prove new execution techniques during 2019. Combining the use of Digital Twin technology, Connected Worker, and Petrofac’s BuildME proprietary software, the oil services firm digitalised all forms of campaign maintenance and inspection activity.

The company claimed that the use of these techniques achieved significant productivity gains compared to industry standards and that it continues to work with BP to extend the benefits of this approach to other applications.

The previous extension to this maintenance service contract was signed in February 2017. The three-year extension was, at the time, worth in the region of $25 million.

The company won the initial five-year £100 million contract service contract for BP’s North Sea assets back in 2009. That was the first contract in which BP separated maintenance services.

Nick Shorten, managing director of Petrofac Engineering and Production Services West, said: “We are proud to build on our long-standing relationship with BP, who have been an early adopter of our digital execution processes.

“We look forward to building on the gains made through this approach and establishing our metering services provision”.

The year so far has been a rollercoaster for Petrofac. What looked like a promising start of the year, ended with a termination of a huge contract for Petrofac.

Namely, the company was in February awarded two contracts from ADNOC, with a cumulative worth of $1.65 billion – $1.5 billion of which was to Petrofac. The rest was supposed to go to SapuraKencana as part of the second, smaller deal.

Soon after, the coronavirus pandemic ensued and Petrofac last month decided to reduce its capex by 40 per cent, reduce salaries across the company, and reduce its personnel by about 20 per cent.

Only days after the cost-cutting measures were announced, Petrofac received a termination notice from ADNOC for the $1.5 billion Dalma contracts.