BAKU, Azerbaijan, Apr.20
By Leman Zeynalova – Trend:
Net production of Petrofac in Integrated Energy Services (IES) for 2020 from its equity interests declined by 10 percent to 1.9 million barrels of oil equivalent (mmboe) (2019: 2.1mmboe), driven by lower PM304 production from the deferral of the East Cendor development to 2021 and the decline in base production, offset by strong production from the Santuario field in Mexico, Trend reports citing the company.
Integrated Energy Services (IES) is Petrofac’s upstream oil and gas business, providing an integrated service for clients under flexible commercial models that are aligned with their requirements. These range from Production Enhancement Contracts (PECs) to traditional Production Sharing Contracts (PSCs).
“For our PEC in Mexico, Magallanes and Arenque, we earned tariff income on a total of 1.9 mmboe (2019: 2.2 mmboe), with the reduction largely due to completion in Q4 2020 of the sale of these assets. Production was also impacted by an unplanned outage at Cendor in PM304 in December, which is ongoing,” said the company.
Petrofac’s revenue for the year decreased 43 percent to US$110 million (2019: US$195 million) reflecting a lower average realised price of US$39/boe (2019: US$67/boe), the decrease in net equity production and lower PEC tariff income and cost recovery.
EBITDA declined 54 percent to US$39 million (2019: US$83 million, restated1 ), reflecting the lower contribution from equity production in Malaysia and lower cost recovery from the Mexico PECs, mitigated by reduced operating and overhead costs. IES generated a business performance net loss of US$18 million (2019: US$4 million loss, restated), with lower EBITDA partly mitigated by lower interest, tax and depreciation.
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