Equatorial Guinea awards Petrofac $350mn five-year contract centred on Zafiro oilfield

Petrofac has been awarded a $350mn technical services contract by Equatorial Guinea's state oil company to support its operations in offshore Block B when it takes over the asset from ExxonMobil (US) in June 2024.

Under the five-year contract, the London-listed oilfield services provider will deliver technical services across onshore support bases, a floating production storage and offloading (FPSO), and an offshore platform.

Petrofac will carry out the work on behalf of Compañía Nacional de Petróleos de Guinea Ecuatorial (GEPetrol), the country’s national oil company (NOC) – which serves as Block B’s operator – centred on the Zafiro oil, gas and condensate field. 

“Our vision is to create a fully capable nationally-operated oil and gas company to manage our assets. Today, I am proud that our vision is becoming a reality,” stated Antonio Oburu Ondo, Equatorial Guinea’s Minister of Mines and Hydrocarbons.

“We will grow our economy through diverse partnerships and investment in our people. Combining our strong indigenous capabilities, with Petrofac’s global expertise and experience, we will deliver significant value for our country.”

The contract includes operations, maintenance, asset integrity, integrity management, marine services, well engineering, project delivery, and supply chain services. It follows Petrofac’s initial scope supporting the transition of the assets from Exxon Mobil’s subsidiary Mobil Equatorial Guinea Inc., which announced its exit from the country in February. 

“This award is an excellent example of our strategy in action: selectively growing our geographic footprint and driving value for our clients through late-life asset optimisation,” said Nick Shorten, COO of Petrofac’s asset solutions.

“Africa is a key focus for our asset solutions business, and we are pleased to build on our operations in Ivory Coast, Ghana, Senegal, and Mauritania with this opportunity in Equatorial Guinea.”

According to Petrofac, the deal draws on Asset Solutions’ core services, including operations, maintenance, asset integrity, integrity management, marine services, well engineering, project delivery, and supply chain services.

The Zafiro oil field is located 68 km from Bioko Island, adjacent to the international border with Nigeria.

ExxonMobil brought the field online in 1996 via subsea wells tied back to the Zafiro Producer floating production unit (FPU). A new fixed platform called Jade was installed several years later. The field was expanded with the FPSO Serpentina in 2003. Exxon stopped production at Zafiro in 2022 due to water entering the FPU.