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: Logo

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

Facebook photo

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

Connecting to %s

%d bloggers like this: