This will be Khalda Petroleum Company’s (KPC’s) fifth gas processing facility (SGT5) to be built at Salam in the Western Desert area of Egypt, adjacent to the ongoing third and fourth Salam gas train facilities (SGT3 and SGT4) which are already being executed by Petrofac.

The award will include front-end engineering and design (FEED), engineering and procurement (EP) services and procurement of long lead items. It is anticipated that this will be converted into a full lump-sum engineering, procurement and construction contract within the next two to four months.

The initial award is reported to facilitate fast-track execution of SGT5 by making best use of Petrofac’s current mobilization in the region and as a result the new train is expected to come onstream towards the end of 2010.

Maroun Semaan, CEO for engineering and construction at Petrofac, said: As with many of our FEED and EP contracts we anticipate being mandated to undertake a later construction project. Such contracts enable customers to access Petrofac’s expertise before commissioning major work and demonstrate our ability to service energy facilities throughout their life cycle.