Petrofac flags challenges in Saudi Arabia and Iraq

Petrofac flags challenges in Saudi Arabia and Iraq
The company has not revealed what are the challenges it is facing in Saudi Arabia and Iraq. (File/AFP)
Updated 25 June 2019

Petrofac flags challenges in Saudi Arabia and Iraq

Petrofac flags challenges in Saudi Arabia and Iraq
  • Britain is probing allegations of bribery against Petrofac Ltd.
  • A previous executive pleaded guilty to 11 counts of bribery

British oilfield services provider Petrofac Ltd. said on Tuesday that it has booked $1.7 billion in new orders so far this year even as it faced challenges in Saudi Arabia and Iraq, which has crimped its business.
Petrofac for the last two years has been navigating legal challenges as Britain probes allegations of bribery at the company. But the company has managed to sign multiple contracts and sell some assets to beef-up its core business.
In February, a former senior executive pleaded guilty to 11 counts of bribery in relation to oil deals in Iraq and Saudi Arabia as part of an investigation brought on by Britain’s Serious Fraud Office (SFO).
While the company has not been charged on any accounts, the convicting of former executives and top bosses being called for inquiries have hammered Petrofac shares. They lost nearly half of their value since the SFO first began its investigations into the company in May 2017 as part of a wider probe into Monaco-based oil and gas consultancy Unaoil on suspected bribery, corruption and money laundering.
Petrofac did not provide an update on the investigation on Tuesday and the company’s shares were down 2% in early dealings.
“We continue to maintain excellent client relationships in all of our markets, although new order intake in the year to date reflects our recent challenges in Saudi Arabia and Iraq,” it said.
Petrofac did not provide additional information on the challenges that it is facing in those regions.
The company also said trading was in line with expectations and it was well-positioned for the second half with good revenue visibility and high levels of tendering activity.