Petrofac

Last updated
Petrofac Limited
Company type Public limited company
LSE:  PFC
IndustryEngineering, Procurement & Construction, Oil & Gas
Founded1981
Headquarters London, United Kingdom
Key people
René Médori, Chairman
Tareq Kawash, Group Chief Executive
Afonso Reis e Sousa, Chief Financial Officer
Products Petrochemicals
RevenueDecrease2.svg US$2,496 million (2023) [1]
Decrease2.svg US$(395) million (2023) [1]
Decrease2.svg US$(523) million (2023) [1]
Number of employees
7,950 (2023) [2]
Website www.petrofac.com

Petrofac Limited is an international energy services company that designs, builds, manages and maintains oil, gas, refining, petrochemicals and renewable energy infrastructure, and trains the people who support them. It operates in a range of markets from design to decommissioning. It is registered in Jersey (number 81792), with its main corporate office on Jermyn Street, London. It has 7,950 employees across more than 30 offices globally. [3] The company is listed on the London Stock Exchange.

Contents

History

The company was established as a producer of a modular plant in Tyler, Texas, United States in 1981. [2] It was first listed on the London Stock Exchange in 2005. [2] In 2010, it bought a 20 percent share in the Gateway storage scheme, an undersea cavern for gas storage. [4] In November 2013, Petrofac and the Italian oil firm Bonatti partnered on a $650 million joint venture with Sonatrach to develop new separation and booster compression facilities, extending the life of the Alrar gas field in south-east Algeria. [5] In November 2014, the company issued a profit warning, saying that profit for 2015 would fall by 25%, as slowing demand in China and abundant US output cut the oil price. [6]

In January 2021, a former Global Head of Sales at Petrofac Ltd., which serves the British energy industry, pleaded guilty to charges related to bribery. The UK Serious Fraud Office confirmed that David Lufkin offered and paid around $30 million to win United Arab Emirates contracts worth $3.3 billion for Petrofac between 2012 and 2018. The guilty plea included 11 other charges of bribery, where Lufkin made corrupt offers to influence contract awards of more than $3.5 billion in Saudi Arabia, and over $730 million in Iraq. [7] In October 2021 Petrofac was fined £77m for seven charges of failing to prevent bribery in the Middle East. [8]

In April 2024, the company announced that its financial results would be delayed to the end of May 2024, because of ongoing financing discussions, and in the meantime, its shares would be suspended. [9] [10] The results were announced on 31 May 2024 but, because of ongoing refinancing discussions, the shares remained suspended. [11]

Services

Petrofac is organised into three divisions: [12]

Related Research Articles

Halliburton Company is an American multinational corporation and the world's second largest oil service company which is responsible for most of the world's largest fracking operations. It employs approximately 55,000 people through its hundreds of subsidiaries, affiliates, branches, brands, and divisions in more than 70 countries. The company, though incorporated in the United States, has dual headquarters located in Houston and in Dubai.

<span class="mw-page-title-main">Pemex</span> Mexican state-owned petroleum company

Pemex is the Mexican state-owned petroleum company managed and operated by the Mexican government. It was formed in 1938 by nationalization and expropriation of all private oil companies in Mexico at the time of its formation. Pemex had total assets worth $101.8 billion in December 2019 and as of 2009 was Latin America's second largest enterprise by annual revenue, surpassed only by Petrobras. The company is the seventh most polluting in the world according to The Guardian.

<span class="mw-page-title-main">ADM (company)</span> American food processing and commodities trading corporation

The Archer-Daniels-Midland Company, commonly known as ADM, is an American multinational food processing and commodities trading corporation founded in 1902 and headquartered in Chicago, Illinois. The company operates more than 270 plants and 420 crop procurement facilities worldwide, where cereal grains and oilseeds are processed into products used in food, beverage, nutraceutical, industrial, and animal feed markets worldwide.

<span class="mw-page-title-main">TotalEnergies</span> French multinational energy and petroleum company

TotalEnergies SE is a French multinational integrated energy and petroleum company founded in 1924 and is one of the seven supermajor oil companies. Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and international crude oil and product trading. TotalEnergies is also a large-scale chemicals manufacturer.

<span class="mw-page-title-main">Foreign Corrupt Practices Act</span> United States federal law

The Foreign Corrupt Practices Act of 1977 (FCPA) is a United States federal law that prohibits U.S. citizens and entities from bribing foreign government officials to benefit their business interests.

Petróleos de Venezuela, S.A. is the Venezuelan state-owned oil and natural gas company. It has activities in exploration, production, refining and exporting oil as well as exploration and production of natural gas. Since its founding on 1 January 1976, with the nationalization of the Venezuelan oil industry, PDVSA has dominated the oil industry of Venezuela, the world's fifth largest oil exporter.

<span class="mw-page-title-main">Sonatrach</span> Oil and gas company of Algeria

Sonatrach is the national state-owned oil company of Algeria. Founded in 1963, it is known today to be the largest company in Africa with 154 subsidiaries, and often referred as the first African oil "major". In 2021, Sonatrach was the seventh largest gas company in the world.

<span class="mw-page-title-main">Hess Corporation</span> American global energy company

Hess Corporation is an American global independent energy company involved in the exploration and production of crude oil and natural gas. It was formed by the merger of Hess Oil and Chemical and Amerada Petroleum in 1968. Leon Hess was CEO from the early 1960s through 1995, after which his son John B Hess succeeded him as chairman and CEO. The company has agreed to be acquired by rival oil company Chevron.

China Aviation Oil (Singapore) Corporation Ltd (CAO) is the largest purchaser of jet fuel in the Asia Pacific region and supplies jet fuel to the civil aviation industry of the People's Republic of China (PRC). CAO supplies to the three key international airport in the PRC, i.e. Beijing Capital International Airport, Shanghai Pudong International Airport and Guangzhou Baiyun International Airport, and accounts for more than 90% of PRC's jet fuel imports. CAO also engages in international trading of jet fuel and other oil products such as fuel oil and gas oil. CAO owns investments in strategic oil-related businesses, which include Shanghai Pudong International Airport Aviation Fuel Supply Company Ltd and China National Aviation Fuel TSN-PEK Pipeline Transportation Corporation Ltd.

Trafigura is a multinational commodity trading company domiciled in Singapore with major regional hubs in Geneva, Houston, Montevideo and Mumbai, founded in 1993. The company trades in base metals and energy. It is the world's largest private metals trader and second-largest oil trader having built or purchased stakes in pipelines, mines, smelters, ports and storage terminals.

Glencore plc is a Swiss multinational commodity trading and mining company with headquarters in Baar, Switzerland. Glencore's oil and gas head office is in London and its registered office is in Saint Helier, Jersey. The current company was created through a merger of Glencore with Xstrata on 2 May 2013. As of 2015, it ranked tenth in the Fortune Global 500 list of the world's largest companies. In the 2020 Forbes Global 2000, Glencore International was ranked as the 484th-largest public company in the world. As of July 2022, it was the world's largest commodity trader. In 2023, the company was ranked 59th in the Forbes Global 2000.

Saipem S.p.A. is an Italian multinational oilfield services company and one of the largest in the world. Until 2016 it was a subsidiary of Italian oil and gas supermajor Eni, which retains approximately 30% of Saipem's shares.

<span class="mw-page-title-main">Gunvor</span> Cypriot-registered Swiss commodity trading company

Gunvor Group Ltd is a multinational energy commodities trading company registered in Cyprus, with its main trading office in Geneva, Switzerland. Gunvor also has trading offices in Singapore, Houston, Stamford, London and Dubai, with a network of representative offices around the globe. The company operates in the trade, transport, storage and optimization of petroleum and other energy products, as well as having investments in oil terminal and port facilities. Its operations consist of securing crude oil and petroleum products upstream and delivering it to market via pipelines and tankers. Gunvor has a separate company, Nyera, set up in 2021 to invest in renewable energy sources. It is run by energy transition director Fredrik Tornqvist.

Vitol is a Swiss-based Dutch multinational energy and commodity trading company that was founded in Rotterdam in 1966 by Henk Viëtor and Jacques Detiger. Though trading, logistics and distribution are at the core of its business, these are notably complemented by refining, shipping, terminals, exploration and production, power generation, and retail businesses. Vitol has over 40 offices worldwide, with its largest operations in Geneva, Houston, London, and Singapore.

<span class="mw-page-title-main">BP</span> British multinational oil and gas company

BP p.l.c. is a British multinational oil and gas company headquartered in London, England. It is one of the oil and gas "supermajors" and one of the world's largest companies measured by revenues and profits. It is a vertically integrated company operating in all areas of the oil and gas industry, including exploration and extraction, refining, distribution and marketing, power generation, and trading.

Olufemi Peter Otedola is a Nigerian businessman and philanthropist. He is the former chairman of Forte Oil PLC, and is the current executive chairman of Geregu Power PLC.

Energy in Algeria encompasses the production, consumption, and import of energy. As of 2009, the primary energy use in Algeria was 462 TWh, with a per capita consumption of 13 TWh. Algeria is a significant producer and exporter of oil and gas and has been a member of the Organization of the Petroleum Exporting Countries (OPEC) since 1969. It also participates in the OPEC+ agreement, collaborating with non-OPEC oil-producing nations. Historically, the country has relied heavily on fossil fuels, which are heavily subsidized and constitute the majority of its energy consumption. In response to global energy trends, Algeria updated its Renewable Energy and Energy Efficiency Development Plan in 2015, aiming for significant advancements by 2030. This plan promotes the deployment of large-scale renewable technologies, such as solar photovoltaic systems and onshore wind installations, supported by various incentive measures.

AtkinsRéalis Group Inc., previously known as SNC-Lavalin Group Inc., is a Canadian company based in Montreal that provides engineering, procurement, and construction (EPC) services to various industries, including mining and metallurgy, environment and water, infrastructure, and clean energy. AtkinsRéalis was the largest construction company, by revenue, in Canada, as of 2021.

Unaoil is a Monaco based company which provides "industrial solutions to the energy sector in the Middle East, Central Asia and Africa." Unaoil is incorporated in the British Virgin Islands, a tax haven with an opaque banking system.

The Ahsani family are a prominent Monaco-based business family of Iranian origin. The family is headed by Ata Ahsani. Ata and his two sons Cyrus and Saman run the energy industry consultancy Unaoil; his third son, Sassan, heads the British property company Lumina Real Estate Capital.

References

  1. 1 2 3 "Annual Results 2023" (PDF). Petrofac. Retrieved 3 June 2024.
  2. 1 2 3 "Heritage". Petrofac. Retrieved 2 March 2021.
  3. "Where we operate | About us | Petrofac". www.petrofac.com. Retrieved 2020-03-11.
  4. Petrofac buys into UK gas storage project Archived 2011-04-14 at the Wayback Machine Evening Standard, 6 December 2010
  5. Petrofac and Bonatti win US$650mn EPC project in Algeria, Africa: Oil Review Africa, 2013
  6. "Petrofac issues profit warning". TheGuardian.com . 24 November 2014. Retrieved 6 December 2014.
  7. "Former Petrofac Executive Pleads Guilty to Three Counts of Bribery". The Wall Street Journal. Retrieved 15 January 2021.
  8. "Petrofac fined £77m for string of Middle Eastern bribery charges". CityAM. 2021-10-04. Retrieved 2021-10-11.
  9. "Petrofac shares sink on suspension notice due to full-year results delay". UK Investor Magazine. 29 April 2024. Retrieved 29 April 2024.
  10. "Petrofac shares collapse on debt warning". Energy Voice. 29 April 2024. Retrieved 29 April 2024.
  11. "Where did it all go wrong for Petrofac's shareholders?". The Armchair Trader. 31 May 2024. Retrieved 3 June 2024.
  12. "Petrofac: About Us". Archived from the original on 2013-12-03. Retrieved 2012-04-01.