Petrofac Limited PFC Petrofac Agrees Strategic Alliance with Bowleven

  Petrofac Limited (PFC) - Petrofac Agrees Strategic Alliance with Bowleven

RNS Number : 3865Q
Petrofac Limited
06 November 2012




Press Release







6 November 2012



                               PETROFAC LIMITED

                                      

               PETROFAC AGREES STRATEGIC ALLIANCE WITH BOWLEVEN





Petrofac and Bowleven, the Africa-focused oil  and gas company, have agreed  a 
strategic alliance to support the  proposed development of the Etinde  Permit, 
offshore Cameroon.



The alliance represents an opportunity for Petrofac to leverage its  extensive 
capabilities to  support Bowleven's  proposed development  and builds  on  the 
company's presence in West Africa.



Under the  terms of  the  strategic alliance,  which  is subject  to  Bowleven 
shareholder approval, Petrofac will provide engineering capability to  Euroil, 
Bowleven's  Cameroonian  subsidiary,  to  support  the  delivery  of  a  Field 
Development Plan  (FDP)  for the  proposed  first phase  of  the  development, 
pending satisfactory completion of Euroil's  appraisal of its asset. Prior  to 
approval of the FDP, Petrofac will be remunerated by Euroil for the  provision 
of its service capability.



Subject to  an  agreed  FDP  and satisfaction  of  certain  other  conditions, 
including co-venturer and government approvals, the strategic alliance's  risk 
service arrangements  envisage that  Petrofac  will subsequently  execute  the 
planned development through the provision of project management,  engineering, 
procurement and construction services, and will invest up to US$500 million as
part of  Bowleven's  financial commitment  to  develop the  asset.  Petrofac's 
investment would  be  remunerated through  a  share of  Bowleven's  production 
revenue.



Andy Inglis, Chief Executive, Petrofac  Integrated Energy Services said:  "We 
are delighted to be  working with Bowleven  to help them  unlock the value  of 
their Etinde Permit. Creating  this strategic alliance at  an early stage  of 
the project offers  Petrofac the  opportunity to  provide integrated  services 
covering, onshore and offshore  facilities development, drilling services  and 
training and operations, alongside the deployment of capital. This is in line
with our strategy of providing  our exploration-led customers with  integrated 
project delivery services."



Kevin Hart,  Chief Executive  of Bowleven  Plc added:  "I am  very happy  that 
Bowleven, through our subsidiary Euroil, is entering into a proposed strategic
alliance with Petrofac in  respect of our  planned Etinde phased  development. 
This complementary  union  provides Bowleven  with  potential access  to  both 
investment capital and, just as importantly, Petrofac's extensive  development 
experience. Petrofac's excellent track record of service provision,  including 
training, will  augment  significantly  Euroil's  strong  local  presence  and 
capability. Our alliance with Petrofac will help deliver first production from
our Etinde project, and represents a major step towards our goal of converting
resources to reserves in Cameroon."





The  details  of   the  agreement   are  available   on  Bowleven's   website: 
www.bowleven.com





Ends





For further information contact:





Tulchan Communications Group Ltd   +44 (0)  20 
7353 4200

Stephen Malthouse

Martin Robinson

petrofac@tulchangroup.com











Notes to Editors



Bowleven:

Bowleven is an Africa-focused oil and gas group, based in Edinburgh and traded
on AIM.  It  holds  significant  equity  interests  in  onshore  and  offshore 
exploration acreage in Cameroon and onshore acreage in Kenya.



The Group  has  a strong  and  experienced management  team  with  first-class 
technical expertise and a track record of successfully finding, financing  and 
delivering oil and gas projects to market.





Etinde Permit Overview:

Bowleven operates three  shallow blocks  in the Etinde  Permit area.  Bowleven 
currently has a  75%equity interest and  VitolE&P Limited has  a 25%  equity 
interestin the Etinde Permit. Blocks  MLHP-5, MLHP-6 and MLHP-7 are  located 
near hydrocarbon-bearing regions on the West African coast including  offshore 
Nigeria, Equatorial Guinea and Angola. The  blocks are located across the  Rio 
del Rey  basin  and the  Douala  Basin, together  referred  to as  the  Etinde 
Permit.



ThePermitcovers approximately 2,316 km^2. The water depths are shallow, from
the shoreline  up  to approximately  70  metres maximum  depth.  A  production 
sharing contract was signed over the Permit in December 2008.







Petrofac



Petrofac is  a leading  international  service provider  to  the oil  and  gas 
production  and  processing  industry,  with  a  diverse  customer   portfolio 
including many of the world's leading integrated, independent and national oil
and gas companies. Petrofac  is quoted on the  London Stock Exchange  (symbol: 
PFC).



Petrofac designs and builds  oil and gas  facilities; operates, maintains  and 
manages facilities and  trains personnel; enhances  production; and, where  it 
can leverage its service capability,  develops and co-invests in upstream  and 
infrastructure projects.  Petrofac's range  of services  meets its  customers' 
needs across the full life cycle of oil and gas assets.



With around 17,200  employees, Petrofac  operates out  of seven  strategically 
located operational centres, in Aberdeen, Sharjah, Abu Dhabi, Woking, Chennai,
Mumbai and Kuala Lumpur and has a further 24 offices worldwide.



For  additional  information,  please  refer   to  the  Petrofac  website   at 
www.petrofac.com.

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


SALLFFEFLDLEIIF -0- Nov/06/2012 07:03 GMT
 
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