Petrofac Bullish on Iraq; Shares Rally

Following our recent reporting of Petrofac’s (LSE: PFC) new business in Iraq’s Majnoon oilfield, the company issued its half-year results this morning (Monday).

While the only reference to Iraqi business in the results was the following statement:

In Iraq, we have commenced early stage engineering work for an International Oil Company which is expected to lead to a larger contract award during the second half of the year“;

finance director Keith Roberts later told reporters:

Iraq is going to be an enormous market for companies like us. There are estimates that the total spend on fields in Iraq could be as much as $200 billion (£129 billion) over the 10 years.

We’re now doing work for a major international oil company and are confident that it will turn into a fully approved contract.

For us, being in there early, and getting a foot on the ground as well as experience of operating in Iraq positions us well for getting a piece of that very significant business.

Petrofac shares closed the day up 3.5% at 1410p.

(Sources: Petrofac, London Evening Standard)

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