Petrofac wins $700 million contract on Sakhalin Island

Jersey based energy services company Petrofac is awarded a contract worth more than $700 million by Sakhalin Energy for its onshore processing facility on Sakhalin Island, Petrofac announced on Wednesday.

Petrofac said that the project comprises a lump-sum engineering, procurement and offshore fabrication component, as well as a reimbursable element for construction and site services.

The scope of work includes inlet separation and feed gas compression facilities, a new flare system, utilities, substations and associated buildings, a temporary beach landing facility, refurbishment of the existing camp, temporary site facilities for Sakhalin Energy and Petrofac.

"With early engineering work already underway, the project will support Sakhalin Energy in maintaining its sustainable LNG capacity," said Petrofac.

“We have been executing projects in Russia since the 1990s and this marks our tenth in the country. Sakhalin Island is a very familiar location for Petrofac as our Sakhalin Technical Training Centre, established in 2008, has been helping meet increased local demand for competent personnel specialising in the oil and gas industry," said Sunder Kalyanam, Group Managing Director for Petrofac’s Engineering and Construction Growth business.

Petrofac also signed an agreement with Gazprom's subsidiary South Stream on Tuesday to develop a gas receiving terminal in Turkey for TurkStream gas pipeline project.

By Murat Temizer

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