September 30, 2019 [Energy Voice] – Oilfield service giant Petrofac has clinched a deal to sell the remaining 51% interest in its operations in Mexico to Anglo-French firm Perenco.
It follows Petrofac’s sale of a 49% non-controlling stake in the business to the same buyer in October 2018. UK-headquartered Petrofac will pocket an initial £30 million and a further payment of £66m on completion, which is expected in 2020.
Fees could rise to £221m if certain milestones are reached, including field development. London-listed Petrofac will use the cash to pay off more of its gross debt.
In 2012, Petrofac became the first foreign company to operate state oil fields in Mexico for more than 70 years. The firm was awarded two integrated services contracts by Pemex, Mexico’s national oil company, to develop the Magallanes and Santuario blocks.
Magallanes and Santuario were first discovered by Pemex in the early 1960s and both comprise two mature onshore fields. After taking responsibility for the two assets, Petrofac introduced maintenance and integrity programmes to enhance their performance.
Petrofac took over the operation of the Arenque field in 2013.
Petrofac 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 chief executive Benoit de la Fouchardiere 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.”
“Through our daily performance and the full commitment and support of the Perenco team we will demonstrate to the State company Pemex that we are the clear partner of choice for the future of these types of mature assets.”
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