LONDON (ShareCast) - FTSE 100 (FTSE Index: EO100.FGI - news) oilfield services giant Petrofac (Berlin: P2F.BE - news) has entered into a 'strategic alliance' with AIM-listed oil and gas group Bowleven (LSE: BLVN.L - news) to develop the latter's Etinde Permit, offshore Cameroon, which will see Petrofac invest up to half a billion dollars.
Petrofac will provide engineering capability to Euroil, a subsidiary of Bowleven, to support the delivery of a Field Development Plan (FDP) for the proposed first phase of development, the companies announced on Tuesday.
It will then provide project management, engineering, procurement and construction services, and will invest up to $500m to develop the asset. In return, Petrofac's investment will be remunerated through a share of Bowleven's product revenue.
"We are delighted to be working with Bowleven to help them unlock the value of their Etinde Permit," said Andy Inglis, the Chief Executive Officer (CEO) of Petrofac Integrated Energy Services.
"Creating this strategic alliance at an early stage of the project offers Petrofac the opportunity to provide integrated services covering, onshore and offshore facilities development, drilling services and training and operations, alongside the deployment of capital. This is in line with our strategy of providing our exploration-led customers with integrated project delivery services."
Meanwhile, Bowleven's CEO Kevin Hart said: "This complementary union provides Bowleven with potential access to both investment capital and, just as importantly, Petrofac's extensive development experience. Petrofac's excellent track record of service provision, including training, will augment significantly Euroil's strong local presence and capability."