Petrofac wins one-year extension with NEO Energy

Oilfield services provider Petrofac has been awarded a one-year extension to its integrated services contract with NEO Energy.

The extension, awarded eight months ahead of the renewal date, takes Petrofac’s contract for operations, maintenance, engineering and construction support for NEO Energy’s UK activities, through to December 2022, Petrofac said on Tuesday.

Petrofac supported the transition of operations on the Quad 15 & Flyndre area in 2020 following NEO Energy’s acquisition of the assets from Total.

At the same time, Petrofac assumed responsibility for ongoing operations, maintenance, engineering, and construction under its integrated delivery model.

In July of the same year, under a separate two-year agreement, Petrofac’s well engineering team were selected by NEO Energy to provide Well Management and Well Operator support for 25 production wells across the Affleck, Balloch, Dumbarton, Flyndre, and Lochranza fields.

Commenting, Nick Shorten, Managing Director for Petrofac in the Western Hemisphere, said: “We are thrilled to continue our support of NEO Energy’s late-life asset strategy and pursuit of top-quartile uptime and efficiency.

“The early extension of our integrated services contract provides further endorsement of our ability to seamlessly deliver services across the asset lifecycle”.

It is worth reminding that NEO Energy has also recently entered into two major deals, under which it will gain access to even more NOrth Sea assets.

The company in February 2021 announced it was acquiring a major portfolio of non-operated oil and gas assets in the Central and Northern North Sea from ExxonMobil.

Furthermore, in March 2021, NEO made a deal to acquire Zennor Petroleum, which has a portfolio of assets located in the Central and Northern North Sea, for about $625 million.