Petrofac pulls plug on contract with Malaysian state-owned oil firm Petronas


Who pulled whose plug? And notice that Petrofac’s share prices went up.

Dateline 2016-07-11, City AM (who?)

Petrofac shares popped today after the oilfield services provider scrapped a contract with Malaysia’s state-owned oil firm.

Petrofac’s Malaysian subsidiary and its partners agreed an early stoppage to the development of the the Berantai gas field, located about 150km offshore Peninsular Malaysia, with Petronas.

Petronas was due to pay Petrofac $357m (£275.4m) for the contract last year, which resulted in a profit of just $1m during this period.

The London-listed firm had the right to end it ahead of the expected end date in 2020, depending on the project’s economics.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: