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HRL awards Costain Petrofac engineering and construction contract

Posted: 24 November 2003

Costain Petrofac Limited (CPL) has been awarded a seven year contract to provide a wide range of engineering, construction and project support (ECAPS) services to British Gas Hydrocarbon Resources Limited's (HRL) Morecambe Bay Asset.

Costain Petrofac Limited is a joint venture between Costain Oil, Gas & Process Limited of Manchester and Petrofac Facilities Management Limited of Aberdeen, with its head office located in Manchester.

Starting on 1st January 2004, the contract's seven year term plus the option to extend to twelve years, by five — one year extension periods, will provide the opportunity for CPL to develop a long and rewarding relationship with HRL.

HRL is part of Centrica plc which includes the AA, British Gas and One.Tel businesses in the UK. Through Centrica¹s Energy Management Group, which includes a number of upstream gas and power operations, HRL owns and operates the North and South Morecambe gas fields which comprise gas reception terminals at Barrow, Cumbria, and seven offshore manned and unmanned installations within the East Irish Sea. HRL also operates the Millom and Dalton Fields on behalf of Burlington Resources. The scope of the project also includes Rivers Fields development, which when commissioned, will be operated by HRL.

The contract is a return for HRL to a traditional managed service based on providing core engineering services comprising Front End Engineering Design (FEED) detailed design, construction, installation, commissioning and project management services. Optional services include the provision of manpower, specialist engineering services, technical and non-technical support services. The contracting strategy maintains the benefits of incentivising performance with CPL¹s reward aligned to the achievement of HRL¹s business goals.

"Costain Petrofac are delighted to be awarded this prestigious contract by HRL. CPL is a company formed by two market leaders in their field. Costain brings their enviable engineering design capability and Petrofac has leading-edge facilities management and operations support expertise. This is a powerful combination that will deliver exceptional performance for HRL who we hope, will be the first of our many customers." said Terry Wingfield, CPL's Project Manager.

"Following an intensive tender process we are delighted to award this major engineering contract to Costain Petrofac. In nearly 20 years of safe production from our Morecambe Bay gas fields we have developed a positive safety culture with values for people and their welfare as key business drivers. Costain Petrofac have demonstrated a strong alignment with British Gas HRL's own priorities and we are therefore delighted to offer CPL a long- term opportunity to undertake engineering and project management onshore and offshore," said Kevin Cochrane, Asset Manager for British Gas Hydrocarbon Resources Limited.

"We look forward to the challenges ahead and will continue to seek continuous improvement as the relationship develops."

About Petrofac
Petrofac Facilities Management is a division of Petrofac, a surface facilities solutions provider serving the oil production, oil refining, natural gas and petrochemical industries. Petrofac's capabilities include process design, detailed engineering, project management, worldwide procurement, fabrication and assembly of process modules, construction, commissioning and operation of most types of process plants.

Petrofac has three main operating centres: in the UAE (Sharjah), England (Woking) and Scotland (Aberdeen) and a network of support offices in the Middle East, Former Soviet Union and Latin America. The European Division of Petrofac Facilities Management, based in Aberdeen, employs approximately 2,300 people in the UK and on North Sea installations. The group employs over 3,500 staff.

Petrofac Facilities Management delivers commissioning and operational solutions to its customers, from supply of specialist teams and technical consultancy to full turnkey management of oil and gas plant. Petrofac Facilities Management is differentiated by a deep competence in plant design, a "systems" approach to plant start-up and operational performance management, a unique combination of operational management tools and real alignment with customer objectives.

For more information see www.petrofac.com.

Costain
Costain Oil, Gas and Process (COGAP) is an international process engineering contractor which delivers safe, cost-effective solutions for investments in the world-wide energy and process sectors. COGAP is part of the Costain Group, one of the leaders of the UK engineering and construction sector.

Costain, which dates back to 1865, has completed some of the world's major projects including the world's longest combined road and rail bridge, the Tsing Ma in Hong Kong, and the Channel Tunnel. The Company is currently involved in the Channel Tunnel Rail Link project and is a major force in the UK health sector.

Costain has embarked on a growth strategy which is resulting in a 15 % increase of turnover year on year and a focus on partnering/framework agreements.

For more information see www.costain.com.

Posted by Richard Price, Editor Pipeline Magazine

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