Oil services company Petrofac has been awarded the £500 million contract to build Total’s new gas processing plant at Sullom Voe, it was announced today.
Construction work will begin shortly and it is hoped that the first gas from Total’s Laggan and Tormore fields almost 90 miles north-west of Shetland will be pumped ashore by June 2014.
An access road has been built to the site and an estimated 236,000 cubic metres of peat removed for wet storage at the bottom of the site next to the existing oil terminal.
Up to 1,000 workers will be required to build the new plant, which will be staging post for the gas before it is pumped out east in a new pipeline to meet the Frigg system 145 miles offshore and on down to the St Fergus gas terminal on the Buchan coast.
Shares in Petrofac, which originated in Texas but now has 12,500 staff in 25 offices around the world, rose to 1480p on the London Stock Exchange following the announcement, but fell back slightly to 1468p in later trading.
Maroun Semaan, Petrofac’s group chief operating officer, said: “We are pleased to have been awarded this important contract with Total, a major international customer for our group.”
Bill Dunnett, managing director of Petrofac Offshore Engineering & Operations said: “Today’s announcement represents a very significant milestone for the OE&O business. We have mobilised an excellent project team focused upon delivering the project objectives, while ensuring we respect both the location and the environment, and to work alongside the local Shetland community.”