Petrofac sells remaining 51% of Mexican operations

Petrofac has signed an agreement to sell its remaining 51% interest in its operations in Mexico. Petrofac’s Engineering & Production Services business has been awarded a three-year Operations & Maintenance Support Services. Petrofac has been awarded a well plugging and abandonment contract with leading independent energy company. It ncluding Santuario, Magallanes and Arenque, to Perenco International. Petrofac, in a joint venture (JV) with the State Oil Company of the Republic of Azerbaijan. Company has secured an Engineering and Technical Services contract to support total.

The terms of the transaction are substantially the same as the sale of a 49% non-controlling interest to Perenco in October 2018. National Petroleum Construction Company (NPCC), in conjunction with its joint venture (JV) partner Petrofac. Petrofac confirms award of the Hollandse Kust Zuid offshore grid connection Beta HVAC platform in the North Sea by TenneT. The transaction is subject to regulatory approval and is expected to complete in 2020. Petrofac’s Engineering and Production Services (EPS) business has been awarded two Operations.

“This disposal reinforces our position as a capital-light business”, said Petrofac’s group chief executive, Ayman Asfari.

Under the terms of the agreement, Petrofac will receive an initial US$37.5 million upon signing. E&C Growth and Chairman of Petrofac India participated in a panel discussion. Fady highlighted the need for companies to establish a digital culture. The total consideration of up to US$276 million comprises a fixed amount. Petrofac will provide personnel to the Unity Platform in the Central North Sea. The agreement includes provision of Well Operator and Well Engineering Project Management services. A series of contingent amounts that depend upon future milestones, including field development.

It subject to the level of achievement of the milestones above. The contract builds upon Petrofac’s existing relationship with INEOS FPS in the UKCS. The wells were previously shut-in as part of an earlier decommissioning phase, will now be fully abandoned. It proceeds from the sale will be used to reduce gross debt. Company delighted to have won this competitive bid and participate in the design competition. It follows the award of the contract for HKZ platform Alpha in July 2018 and subsequent confirmation of HKZ platform Beta option.

Engineering, Procurement and Construction (EPC) industry has been slower to adapt and embrace technological advancement. Chemtech is a leading industry event in a key market for Petrofac. Company utilise digital to enhance productivity, and share digital innovations with peers. Company proud of the work we have done since 2011 to enhance production from operations in Mexico. The 12-month contract, with option to extend, will support activity in the Absheron natural gas field. A total of eight 700-megawatt standardised concept transformer substations will be installed offshore of the Netherlands until 2030.

Company achieved for the Santuario field in partnership with Pemex and the Mexican authorities. Petrofac will be responsible for detailed planning, direct procurement. It approximately 100 kilometres south of Baku, where gas was first discovered in 2011. This year company showcasing our digital transformation strategy. The customers in order to drive the digital transformation of the industry. ADNOC and its Group Companies are strategic partners and valued clients to NPCC. Petrofac is responsible for the engineering, procurement, construction and installation of both the third and fourth substations.

SOCAR and Total each have a 50% interest in the field. The maintenance contract extensions for long-standing clients worth a combined value of approximately US$32 million. The another strategic move for Perenco which will allow to accelerate the deployment. It delighted to secure first well engineering scope with Hess. It have together achieved a number of milestones including the recent load-out of one of the world’s largest offshore oil platforms. Company believe that unique know-how will significantly enhance the production.

The award builds on our existing track record for delivering Well Operator and Project Management services. Company committed to supporting ADNOC’s expansion plans to increase their production capacity from 4 million b/d by the end of 2020. The value of mature fields and allow to address all the associated challenges. SOCAR’s semi-submersible drilling rig Heydar Aliyev successfully completed drilling of a first well earlier this year. It have a total contract value of approximately US$200 million.

“The signing of the agreement to acquire the remaining shares in Petrofac’s Mexico operations”, Perenco CEO, Mr Benoit de la Fouchardière said.

Petrofac will deploy support personnel to INEOS FPS via its dedicated 24/7 Delivery Hub. The award continues to demonstrate the competitive profile in the UAE at the early stages of a project’s development. HKZ platform Alpha is scheduled to become operational in 2021. The Hub offers the flexibility of shared resources across contracts, enabling fluctuating client requirements. It complements the wider contracts that we are already engaged in across the ADNOC Group. Petrofac secured a 12-month renewal from Total E&P UK (Total) for the supply of O&M support.

The company has also been awarded a 12-month extension from a major International Oil Company (IOC). Petrofac became the first outsourced Well Operator to execute fully integrated Well Operator services. Company pleased to be expanding our service offering in Azerbaijan. HKZ platform Beta scheduled to become operational in 2022. INEOS is making significant investments into its Forties Pipeline System. Petrofac’s Training Services business has been active in-country since 2004 providing skills development. It will continue to provide offshore and onshore O&M support.

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