Petrofac Acquires Sakhalin Training Business
Petrofac Training has expanded its capability by acquiring from the PPS Group, certain companies which provide operations & maintenance training on Sakhalin Island, Russia (PKT companies), and process control & instrumentation services, in Singapore, Malaysia and Indonesia (PCI companies).
The PPS Group was established in 1990 to provide specialised services primarily in the area of commissioning, start-up, operations & maintenance and training to the oil & gas and petrochemical industries. In 2003, it formed a Russian joint venture company, PKT Technical Services Limited, to provide operations & maintenance training to Sakhalin Energy Investment Company (SEIC), and then in 2005 launched a subsidiary, PKT Training Services Limited, to expand its presence in this market. Running to December 2008, PKT's current contracts with SEIC are for the provision of technical, operations and maintenance training along with specific competency development, with a target to train over 200 technicians during this period.
The acquisition provides Petrofac with a presence in one of the most significant oil & gas development areas in the world today; the Sakhalin II development is expected to create more than 2,000 jobs, generating significant training opportunities on the island. The acquisition of PKT ensures Petrofac is well placed to address this market.
In addition, the acquisition enhances Petrofac Training's capability in the areas of mechanical, electrical and process engineering training, which can be utilized worldwide.
The PCI companies currently provide design, engineering, system developments and process skid fabrication, providing Petrofac Training with additional engineering design in support of its training operations.
Leigh Howarth, Managing Director of Petrofac Training, said: "We are delighted with this acquisition which enhances our international training capability and follows our wider strategy to focus on regions with major hydrocarbon reserves. There are a number of opportunities to grow and develop the business in the region, particularly in relation to the Sakhalin projects."
Phil Costelloe, who joins Petrofac Training from the PPS Group at Director level with responsibility for the PKT & PCI companies, said: "This opportunity has come at an excellent time for PKT & PCI, allowing the business to build on the foundations already developed in Sakhalin Island, Singapore, Malaysia and Indonesia. To be part of Petrofac will undoubtedly be of benefit. It has been clear from the outset that our common approach to the market place and to the provision of quality services should result in a very bright future for all concerned."
Approximately 40 staff will transfer from the PPS Group to Petrofac Training.
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