BP Extends Petrofac's (POFCY) Contract for North Sea Operations
BP plc BP has awarded a contract extension to Petrofac Limited POFCY, to continue supporting BP’s North Sea portfolio. Petrofac has stated that it would be rendering maintenance and engineering services BP’s oil and gas assets in the U.K. North Sea. The services will be provided under the terms of a multi-million-dollar deal spanning three years.
Petrofac has worked with BP for 15 years in the North Sea. It perceives the contract extension as a testament to its commitment to delivering on its shared goals of enhanced efficiency and asset life extension.
BP currently operates the Clair Phase One project, Clair Ridge, Glen Lyon, the currently shut down Foinaven field, Eastern Trough Area Project or ETAP, and Andrew, in the North Sea. The energy supermajor also has non-operated interests in the Central North Sea, including TotalEnergies Culzean development and Ithaca Energy’s Vorlich field.
The contract extension further builds on the multi-year relationship between the two companies. Petrofac had also secured another contract with BP outside the North Sea. In January 2024, the company had been hired on a long-term contract to work for BP’s Greater Tortue Ahmeyim (GTA) project off the coasts of Mauritania and Senegal.
Additionally, Petrofac has recently received a contract extension in the South North Sea from ONEgas West. It had secured contracts for decommissioning work with Saipem in October 2023, along with a three-year contract extension for maintenance services with Repsol Sinopec.
Zacks Rank and Key Picks
Currently, BP and POFCY carry a Zacks Rank #3 (Hold) each.
Some better-ranked stocks in the energy sector are Archrock Inc. AROC and SM Energy SM. Archrock and SM Energy presently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior- year reported figure, signaling a bright production outlook.
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