One-Year Extension: Petrofac to Keep Servicing NEO Energy’s North Sea Assets

Oilfield services company Petrofac has secured a one-year extension to its integrated services contract with NEO Energy in the UK North Sea.

“The extension, awarded eight months ahead of the renewal date, takes Petrofac’s contract for operations, maintenance, engineering and construction support for NEO Energy’s UK activities, through to December 2022,” Petrofac said Tuesday.

Petrofac supported the transition of operations on the Quad 15 & Flyndre area in 2020 following NEO Energy’s acquisition of the assets from Total, and assumed responsibility for NEO’s ongoing operations, maintenance, engineering and construction under its integrated delivery model.

In July 2020, under a separate two-year agreement, Petrofac’s well engineering team was selected by NEO Energy to provide Well Management and Well Operator support for 25 production wells across the Affleck, Balloch, Dumbarton, Flyndre, and Lochranza fields.

As reported last year, NEO Energy, backed by HitecVision, bought a package of Total’s assets in the UK North Sea.

The transaction consisted of four producing areas of the UK North Sea, with an average 2019 production of approximately 23,000 boepd and substantial development upside. The assets were previously owned by Maersk Oil, which Total acquired in March 2018.

The portfolio added reserves of c. 51 MMboe to NEO Energy. The transaction included operatorship of two asset clusters, the Quad 15 and Flyndre areas, and an operator organization of more than 60 employees and contractors.