Petrofac to build $477m gas pant in Syria
Posted: 07 April 2008
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UK-based oil and gas services company Petrofac has won a $477 million lump-sum contract from Petro-Canada to build a gas treatment plant for the Ebla project in Syria.
The Ebla plant will be designed to produce 88m standard cubic feet of sales gas per day and 150 tonnes of liquefied petroleum gas (LPG) 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,” said Maroun Semaan, chief executive of Petrofac Engineering and Construction.
Under the agreement, Petrofac will take a 10% stake in the Ebla production-sharing contract.
Shares in Petrofac were up 1.4% at 575 pence, valuing the company at around £2.04bn ($4.05 billion).
“This is good news for the company,” Seymour Pierce analyst Peter Hitchens said in a statement. “However, we are concerned over the group wanting to take a 10% stake in the project,” he added.
“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. |
