9th Nov 2006 07:01
Petrofac Limited09 November 2006 PETROFAC LIMITED ("PETROFAC") INVESTMENT IN TUNISIAN INTEREST Petrofac, the international oil & gas facilities service provider, announcesthat its Resources division has agreed to acquire a 45% interest in the Cherguiconcession, Tunisia, for a cash consideration of approximately US$30 million.Petrofac will be operator of the concession. Petrofac has agreed to acquire the interest from Entreprise TunisienneD'Activities Petrolieres (ETAP), the Tunisian state oil company, which holds theremaining 55% interest. Completion of the transaction remains subject toapproval by the relevant government authorities. The Chergui gas field, located on and around Kerkennah Island, near Sfax,Tunisia, was discovered as part of the West Kerkennah exploration permit grantedin the late 1970's with preliminary reserves estimates of approximately 50billion standard cubic feet (SCF) under the anticipated development programme.Petrofac's share of the investment required to complete the development isexpected to be approximately $20 million. The construction of a 20 million SCFper day central production facility and a 57km pipeline to shore is alreadyunderway, the completion of which will be managed by Petrofac. Commencement ofproduction from the field is expected during 2007, with plateau rates expectedto be maintained for around four years with a further eight years of operationbeyond that. Produced gas is to be sold to Societe Tunisienne d'Electricite etGaz (STEG) under the gas pricing formula fixed by existing law, in which theprice of gas is linked to FOB Med Fuel oil prices. Amjad Bseisu, Chief Executive of Petrofac Resources, said: "Tunisia has awell-developed and stable hydrocarbon regime which offers interestingopportunities for Petrofac. We believe that the objectives of ETAP and theTunisian government can be met through our strong engineering and operationalcapabilities whilst co-investment with ETAP ensures alignment as theirdevelopment partner. Chergui is an attractive investment and fits our businessmodel of working with national oil companies and local partners to catalysedevelopments." Ayman Asfari, Group Chief Executive, Petrofac Limited, said: "We have beenactive in Tunisia through our Engineering & Construction division for some timeand this investment brings an exciting opportunity to leverage our servicedivisions' capabilities whilst acting as the development partner to a nationaloil company." Ends For further information, contact: Petrofac Limited +44 (0) 20 7811 4900Ayman Asfari, Group Chief ExecutiveKeith Roberts, Chief Financial OfficerRobin Caiger, Head of Investor Relations Bell Pottinger Corporate & Financial +44 (0) 20 7861 3232Ann-marie WilkinsonGeoff Callow Notes to Editors Petrofac Petrofac is a leading international provider of facilities solutions to the oiland gas production and processing industry, with a diverse client portfolioincluding many of the world's leading integrated, independent and national oiland gas companies. Petrofac is quoted on the London Stock Exchange (symbol: PFC)and is a constituent of the FTSE 250 Index. Through its three divisions, Engineering & Construction, Operations Services andResources, Petrofac designs and builds oil and gas facilities; operates,maintains or manages facilities and trains personnel; and, where return criteriaare met and service revenue synergies identified, co-invests with clients andpartners. Petrofac's range of services allows it to help meet its clients' needsacross the life cycle of oil and gas assets. With approximately 8,000 employees, Petrofac operates out of four strategicallylocated international centres, in Aberdeen, Sharjah, Woking and Mumbai and afurther 13 offices worldwide. The predominant focus of Petrofac's business ison the UK Continental Shelf (UKCS), Africa, the Middle East, the Commonwealth ofIndependent States (CIS) and the Far East. For additional information, please refer to the Petrofac website atwww.petrofac.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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