Petrofac Inks Lucrative Turkmen Natural Gas Deal

Petrofac has been engaged by Turkmengas, the state-owned national gas company of Turkmenistan, to provide services in relation to the development of the South Yoloten gas field, situated approximately 400 km south east of the capital Ashgabat.

The first phase of the contract, which was signed with Petrofac International (UAE) LLC, valued at approximately US $100 million, will involve Petrofac completing a front end engineering and design study for the Project together with initial planning and set-up studies. After satisfactory conclusion of the first phase, the contract contemplates moving into a second phase, which will include the engineering, procurement and commissioning work for a 10 billion cubic meters per annum (bcma) gas processing facility along with the infrastructure and pipelines for the entire 20 bcma development.

Petrofac's extensive experience of designing and constructing facilities to handle and process sour gas was a factor in Petrofac's selection for the project as the feed gas from the field contains around 6% H2S. The eventual scope for the South Yoloten development is likely to include: well pad facilities; gathering systems; gas processing and sweetening; sulphur handling, storage and export and condensate processing, storage and export facilities.

Maroun Semaan, group chief operating officer said, "This is Petrofac's first project award in Turkmenistan although we have been building our relations with Turkmengas for some time. The development of the South Yoloten field is a critical part of Turkmenistan's plans to exploit their very significant hydrocarbon resources and we are honoured to have been given the opportunity to work on this important project at such a strategic stage of its evolution."

Editor's note: The combined two-phase engineering contract is reportedly valued at $4 billion upon successful completion of the initial phase of development, according to Dow Jones Newswires.