Petrofac Limited (PFC) - Petrofac Agrees Strategic Alliance with Bowleven
RNS Number : 3865Q
06 November 2012
6 November 2012
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,
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
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:
For further information contact:
Tulchan Communications Group Ltd +44 (0) 20
Notes to Editors
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
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 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:
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
This information is provided by RNS
The company news service from the London Stock Exchange
SALLFFEFLDLEIIF -0- Nov/06/2012 07:03 GMT
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