Petrofac Limited (LSE:PFC) has teamed up with decommissioning firm Promethean Decommissioning Company to decommission a group of 200 offshore oil wells in the US Gulf of Mexico.
The oilfield services company said the South Pass 60, South Pass 6, and East Breaks 165 legacy offshore fields and assets include nine platforms and 32 pipeline segments.
Promethean, which will fulfill field decommissioning orders received in February 2022 from the US Department of Interior's Bureau of Safety and Environmental Enforcement, has now selected Petrofac as the decommissioning services provider.
For Petrofac the contract is valued at US$200mln based on the estimated decommissioning costs provided by Department of Biosystems Science and Engineering (BSSE).
"This significant contract recognises our industry-leading decommissioning programme management experience and our unique in-house capability to manage all well and asset decommissioning phases," said Nick Shorten, chief operating officer for Petrofac’s asset solutions business.
"We look forward to working with PDC as part of our alliance to deliver a new approach to large-scale decommissioning programmes in the Gulf of Mexico."