OIL services giant Petrofac has suffered a fall in business in the North Sea, where activity levels remain under pressure in spite of the partial recovery in the crude price since last November.
In an update on trading in the year to date Petrofac noted the division that works on production facilities has been impacted by “lower activity, utilisation and order intake” in the North Sea.
The company said this has been largely offset by a good performance in other markets.
The update provides fresh evidence conditions are tougher in the North Sea than in other major oil and gas regions.
The increase in the crude price has encouraged firms to increase investment in areas like the Middle East and Asia Pacific, where costs may be lower than in the North Sea.
Petrofac chief executive Ayman Asfari noted: “We have seen a recovery in new order intake in 2017, securing $5.2 billion (£3.9bn) in new awards in the year to date in both existing and new arkets. Tendering activity remains high, we continue to maintain our bidding discipline in competitive markets and we have a healthy order backlog.”
On Wednesday Aberdeen-based Wood highlighted continued challenges in the oil and gas market as it hailed the benefits of the £2.2 billion takeover of Amec Foster Wheeler which will reduce its reliance on the North Sea.
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