LONDON (dpa-AFX) - Shares of Petrofac Limited (POFCF.PK, POFCY.PK, PFC.L) were gaining around 2 percent in the morning trading in London after the oil and gas industry service provider announced Tuesday that it has received a contract valued around $200 million in total by TenneT, a Dutch-German transmission grid operator.
The contract is for the Hollandse Kust Zuid or HKZ offshore grid connection and more specifically for the Alpha and optional Beta HVAC platforms (substations) in the North Sea.
The Dutch government is targeting a total of 3.5 gigawatt of wind energy production capacity offshore by 2023. To achieve this, five 700 megawatt standardised concept transformer substations are planned for installation offshore Netherlands.
Petrofac will be responsible for the engineering, procurement, construction and installation or EPCI of the third and fourth substations which have a total contract value of approximately $200 million.
HKZ platform Alpha is scheduled to become operational in 2021, HKZ platform Beta is still subject to the tendering of the wind farm concession by the Dutch government and subsequently is scheduled to become operational in 2022.
George Salibi, Group Chief Commercial Officer, said, 'We have been involved in a number of projects with TenneT in the North Sea, so are delighted with the opportunity to support them with this key project. The award of this EU tender builds on our relationship and is further demonstration of Petrofac's expansion into adjacent sectors, including renewable energy.'
In London, Petrofac shares were trading at 567.80 pence, up 2.05 percent.
Copyright RTT News/dpa-AFX