Petrofac wins $700m engineering contract on Sakhalin Island, Russia


Oil field services company Petrofac has secured a contract worth more than $700m to provide engineering services at Sakhalin Energy Investment Company’s onshore processing facility (OPF) on Sakhalin Island, Russia. 

Petrofac’s project consists of a lump-sum engineering, procurement and offshore fabrication component, in addition to a reimbursable element for construction and site services. 

Work related to the project includes inlet separation and feed gas compression facilities and a new flare system, as well as utilities, substations and associated buildings.

Petrofac engineering and construction growth business group managing director Sunder Kalyanam said: “Sakhalin Island is a very familiar location for Petrofac as our Sakhalin Technical Training Centre (STTC), established in 2008, has been helping meet increased local demand for competent personnel specialising in the oil and gas industry. 

“From STTC we are able to supply a wide range of technical support services, including front-end engineering and design, pre-commissioning and commissioning, operations and maintenance, as well as technical manpower support.”

"From STTC we are able to supply a wide range of technical support services, including front-end engineering and design, pre-commissioning and commissioning, operations and maintenance, as well as technical manpower support."

The project also includes a temporary beach landing facility, refurbishment of the existing camp and temporary site facilities for Sakhalin Energy and Petrofac, in addition to brownfield tie-ins to the existing OPF.

It is expected to support Sakhalin Energy in maintaining its sustainable LNG capacity.

In a separate development, Petrofac has secured a €340m ($404.71m) engineering, procurement and construction (EPC) contract to enable Gazprom’s subsidiary South Stream Transport to develop onshore pipelines and a gas receiving terminal near Kiyiköy in Turkey.

The project is related to the TurkStream gas pipeline, which is expected to begin commercial operations in December 2019.

Once works on the receiving terminal are completed, the facility is expected to receive 31.5 billion cubic metres of gas annually from the pipeline, which originates from the compressor station in Anapa, Russia.