Petrofac set for Doroud

02 November 2001

Sharjah-based Petrofac Internationalreceived on 16 November a letter of award for the $200 million Doroud onshore surface facilities contract. A signing is expected soon, following the execution of formal documentation. Petrofac has taken on board Jahan Parsas its local partner for the works. A high level of Iranian content is understood to have been a key factor in the bid evaluation. The client is France's TotalFinaElf, with Petroleum Engineering Development Company (Pedec)- a subsidiary of the National Iranian Oil Company (NIOC - MEED 12:10:01).

The engineering, procurement and construction (EPC) contract calls for the installation of seawater-lifting, treatment and water injection facilities; oil treatment and gas injection facilities; gas-sweetening, power generation and distributed control systems; and infield flow lines. The scope also includes construction of technical buildings and other utilities.

The project, which is scheduled for completion in 2004, will increase output from the Doroud field, located near Kharg island. TotalFinaElf is bound by its $1,000 million buy-back agreement, signed in 1999, to increase oil production at the field by 90,000 barrels a day (b/d) to 210,000 b/d (MEED 12:3:99).

Petrofac beat off stiff competition from three other bidders for the contract, which is the company's first in Iran. 'This project will lay a sound foundation to our positioning in the Iranian engineering and construction market,' said a Petrofac official following the award.

The Middle East accounts for 50 per cent of the company's turnover, which is expected to exceed $350 million this year. Its key historical markets are in Syria, Algeria, Yemen and Oman but it is branching out into Iran, Libya and Saudi Arabia. In the latter, it is targeting several lump sum turnkey contracts associated with the gas initiative.

The company's largest project to date is its $600 million joint venture with the US' ABB Lummus Globalfor the Ohanet gas development in Algeria. Petrofac has taken a 10 per cent equity stake in the project. Engineering has been completed and construction work is expected to start early next year, followed by commissioning in 2003 (MEED 14:7:00).

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