Petrofac is to sell its remaining 51 percent interest in its operations in Mexico, including Santuario, Magallanes and Arenque, to Perenco (Oil & Gas) International.
Petrofac will receive an initial $37.5 million upon signing and a further minimum payment of $82.5 million upon completion. The total consideration of up to $276 million comprises a fixed amount and a series of contingent amounts that depend upon future milestones, including field development, commercial, service contract transition and fiscal terms, and is subject to the level of achievement of the milestones above. Proceeds from the sale will be used to reduce gross debt.
Petrofac’s Group Chief Executive, Ayman Asfari said: “This disposal reinforces our position as a capital-light business and represents further progress in our stated strategy to enhance returns. We are proud of the work we have done since 2011 to enhance production from our operations in Mexico and, in particular, of the country’s first ever contract migration, which we achieved for the Santuario field in partnership with Pemex and the Mexican authorities.”
Perenco CEO, Mr Benoit de la Fouchardière, said: “The signing of this agreement to acquire the remaining shares in Petrofac’s Mexico operations marks another strategic move for Perenco which will allow us to accelerate the deployment of our expertise in relation to the Santuario, Magallanes and Arenque assets. We believe that our unique know-how will significantly enhance the production and value of these mature fields and allow us to address all the associated challenges.”
The transaction is subject to regulatory approval and is expected to complete in 2020.
For more information visit www.petrofac.com