Petrofac Secures 5-Year NEO Energy Deal Extension

Petrofac has revealed that it has secured a five-year contract extension for well management and well operator services with NEO Energy.

Under the deal, Petrofac will provide a five-year framework for well management and well operator support for 27 wells across the Affleck, Balloch, Dumbarton, Lochranza and Finlaggan fields in the UK Central North Sea, the company outlined. The contract also positions Petrofac to support future well construction and intervention campaigns, Petrofac noted.

The value of the deal was not disclosed by Petrofac, which highlighted that its latest contract builds on its previously awarded integrated services contract for NEO Energy.

“As well operator for over 50 wells on behalf of seven clients, including NEO Energy, this award allows us to build on our exemplary track record of delivering well operator services in the UKCS,” Nick Shorten, the chief operating officer for Petrofac’s asset solutions business, said in a company statement.

“Unlocking long-term value for our clients is of the utmost importance to Petrofac. Since taking on well management and well operator responsibilities on behalf of NEO in 2020, we have proactively managed the integrity of existing well stock, supported the successful startup of the Finlaggan field and continued to plan and prepared for execution of production enhancing intervention and new well construction campaigns in 2022/23,” Shorten added in the statement.

“We have achieved this thanks to our close working relationship with NEO and our commitment to enhancing value and delivery excellence,” he went on to say.

Founded in July 2019 as an independent full-cycle energy business in the UKCS, NEO Energy is backed by HitecVision, a private equity investor. Last month, NEO Energy announced the completion of its previously announced acquisition of a portfolio of non-operated oil and gas assets in the Central and Northern North Sea from ExxonMobil and in November 2021 the company revealed it had signed a deal to buy 100 percent of the share capital of JX Nippon Exploration and Production (U.K.) Limited. In July 2021, NEO Energy announced the completion of its acquisition of independent oil and gas company Zennor Petroleum Limited.

Petrofac, which describes itself as a leading energy services company, announced a spate of North Sea deals last year. In December 2021, the company revealed that it had secured a two-year contract extension for engineering services on Neptune Energy’s Cygnus Alpha and Bravo platforms in the UK Southern North Sea. This followed the award of a separate, three-year contract extension to the company back in July for operations and maintenance support in the UK.

Also in July 2021, Petrofac announced that it had been elected through competitive tender to deliver stage two of Ithaca Energy’s Captain Enhanced Oil Recovery (EOR) project in the UK’s central North Sea, and in June 2021, Petrofac revealed that it had secured a North Sea duty holder contract extension with EnQuest.

To contact the author, email andreas.exarheas@rigzone.com