Petrofac Wins Facilities Contract from Tullow

Petrofac Facilities Management has entered into a provisional agreement with Tullow Oil UK Ltd to manage its UK Hewett and Bacton facilities.

Tullow has agreed in principle to purchase the entire ConocoPhillips interest in the Hewett assets in the Southern North Sea sector of the UKCS and the gas terminal at Bacton, and to take over operatorship of those assets. The acquisition and operatorship transfer are subject to the necessary governmental and co-venturer approval.

Tullow intends to appoint Petrofac as manager of the six gas-producing installations in the Hewett Field. The field is 25 miles east of Great Yarmouth in the Southern sector of the North Sea. The Hewett installations, three normally unmanned with the others joined in a central complex, are tied back to the onshore Bacton Terminal in East Anglia.

Under the arrangement, Tullow also intends to appoint Petrofac as manager of the Bacton Terminal. This will mark the first time that a service company has been awarded the management of an onshore gas terminal in the UK.

This is Petrofac's fourth UKCS Facilities Management agreement. As well as managing the production facilities for the ChevronTexaco Galley field for the past five years, Petrofac recently completed the transition of the Paladin owned Montrose, Arbroath and Arkwright fields and assumed responsibility for these facilities on the 20 May 2003. Petrofac was also awarded a contract by Venture Production for its recently acquired Kittiwake facilities.

This arrangement will see new onshore and offshore organizational structures emerging in Petrofac Facilities Management, including an additional 10 support jobs based in its European Division headquartered in Aberdeen. Petrofac will provide staff and the management systems for the assets both offshore and onshore.

Jim Atack, Managing Director, Petrofac Facilities Management Europe said: "The appointment by Tullow is significant as it represents another milestone in the development of our company into the Southern North Sea and onshore terminal management.

"This innovative relationship is indicative of the way Petrofac is aligning directly with its clients' key business drivers both in the UK and internationally. It demonstrates Petrofac's full facilities management capability and maintains our position as the first choice provider of operations management, maintenance, engineering and construction services to the oil, gas and petrochemical marketplace."