Business | Oil & Gas

Petrofac wins $477m gas contract in Syria

British-based oil and gas services company Petrofac Ltd said on Friday that it had won a $477 million lump-sum contract from Petro-Canada to build a gas treatment plant for the Ebla project in Syria.

  • Reuters
  • Published: 21:02 April 4, 2008
  • Gulf News

London: British-based oil and gas services company Petrofac Ltd said on Friday that it had won a $477 million lump-sum contract from Petro-Canada to build a gas treatment plant for the Ebla project in Syria.

The Ebla plant will be designed to produce 88 million standard cubic feet of sales gas per day and 150 tonnes of liquefied petroleum gas (LPG) per day.

"This is another significant award in Syria for Petrofac which, taken together with the Jihar gas plant award, provides us with almost $1 billion of work in a country where we have successfully worked on a number of projects," Maroun Semaan, chief executive of Petrofac Engineering & Construction, said in a statement.

Under the deal, Petrofac will take a 10 per cent stake in the Ebla production-sharing contract.

Shares

Shares in Petrofac were up 1.4 per cent at 575 pence at 0730 GMT, valuing the company at around £2.04 billion ($4.05 billion).

"This is good news for the company," Seymour Pierce analyst Peter Hitchens said in a note. "However, we are concerned over the group wanting to take a 10 per cent stake in the project."

"The management wants to build up the Energy Development business by bringing its engineering skills to progress upstream projects. However, we are concerned if this will add much shareholder value, given that the company will only be a minority partner in this project," Hitchens added.

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