Petrofac grabs $700 million contract in Kuwait

British oil and gas services group Petrofac said it secured a $700 million contract from Kuwait Oil Company for a gathering centre located north of Kuwait City. The project, which includes engineering, procurement, construction, pre-commissioning and commissioning of GC29, is to be completed over three years.

The gathering centre, Petrofac’s 10th project in that country, will be capable of producing about 100,000 barrels of oil per day, along with water and gas, the company said in a statement.

The contract is the third – totalling about $2.3 billion – since Britain’s largest oil services company warned on profit in May, citing poor performance of flagship projects.

Petrofac’s shares slumped 15 percent on the warning and have inched up less than 1 percent since then. The company, which had pinned many of its medium-term growth projections on its Integrated Energy Services (IES) division, entered a $1.25 billion investment venture with private equity firm First Reserve in June in an effort to refocus the IES business.