Petrofac (LON:PFC) , the FTSE 100 oil and gas services group, has signed a Risk Service Contract (RSC) to lead the development of the Berantai field, offshore Malaysia, from the country’s national oil company, Petronas. Petrofac has a 50% interest in the RSC, alongside local partners Kencana Energy and Sapura Energy Ventures, both of which hold a 25% interest. The Berantai partners will develop the field and will subsequently operate the field for seven years after first gas production.

As part of the fast-track development, a wellhead platform will be installed to support the drilling of 18 wells, with a second wellhead platform expected to be installed in a subsequent phase. Both platforms will be connected to a Floating Production Storage and Offloading (FPSO) vessel which will be jointly owned by the Berantai partners. The FPSO will undergo modification to ensure suitability for the Berantai development. Produced gas will be exported by subsea pipeline via the Angsi Field, which lies 15km away, while oil will be offloaded via shuttle tanker.

The project is targeting first gas by the end of December 2011 with the first phase wells expected to be completed during 2012. The full field development, excluding delivery of the FPSO, is anticipated to require capital investment of approximately US$800 million – of which Petrofac's share is 50%. Under the terms of the RSC, the Berantai partners will receive a rate of return linked to their performance against an agreed incentive structure, including project costs, timing to first gas and sustained gas delivery after project completion, with an ongoing incentive structure based on operational uptime.

Rob Jewkes, managing director, Petrofac Energy Developments said: “We are delighted to be working with Petronas, a customer we know well. While continuing to develop the first and second phases of the Cendor field, we are pleased that Petronas has once again chosen to partner with Petrofac. We are looking forward to drawing upon our experience of fast-track developments to provide a range of fully integrated services from design and construction through to sub-surface capability and operations.”

Separately, Petrofac today announced the appointment of a new chairman and non-executive director to its Board. Norman Murray, a co-founder and former chairman of Morgan Grenfell Private Equity, will succeed Rodney Chase as chairman and Roxanne Decyk will be appointed as independent non-executive director. The moves are…

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