Petrofac provides facilities and solutions to the oil & gas production industry in the UK, Middle East, and North Africa. Petrofac has four business segments, with Engineering & Construction (75% 2010 sales) and Offshore Engineering & Operations (17%) the largest. The demerger of UKCS assets to EnQuest Plc underscores Petrofac’s focused “build and harvest” core strategy. Petrofac acquired three companies in H1-2010 to expand the company globally. Petrofac’s backlog at the end of 2010 was GBP 7.5bn (~3 x 2010 sales) which provides visibility for the coming years. The company has no debt and a cash balance of ~GBP 1bn (Q4 2010), which provides an advantage in executing large financially demanding Turnkey projects. Petrofac faces potential asset risks due to lump sum turnkey contracting and potential changes in the regimes of countries in which it operates. Good insurance cover should protect against huge liabilities in case of production accidents.