Petrofac Brings Well Ops Services In-house

Petrofac, the international oil & gas facilities service provider, has acquired a 51% interest in SPD Group Limited (SPD), a specialist provider of well operations services, for a total consideration of $7 million (adjusted for surplus cash), comprised of $5 million in cash and $2 million to be satisfied through the issue of 274,938 new Ordinary Shares. Petrofac may, or may be required to, acquire the remaining 49% of SPD for a cash consideration which will be determined by the level of future profitability and which will in no event exceed $30 million.

Based in Dubai and Aberdeen, SPD's main areas of expertise are well project management, well engineering optimization, well engineering studies and consultancy services. With around 70 staff and associates, SPD is managing well operations in Africa, Europe and the Middle East as well as supporting the operations of national and international oil companies in the Middle East, Europe and Africa. SPD was recently awarded the contract to provide well operations management services in support of Petrofac's operations management responsibilities for Dubai's offshore oil & gas assets.

Ayman Asfari, group chief executive of Petrofac, commented: "We are delighted with this acquisition which brings in-house an important service capability as we seek to provide a broader offering to our clients. SPD's management team has achieved a significant presence in its market and we look forward to working with them to continue this growth."

Clive Smith, managing director of SPD, commented: "Working with Petrofac on the Dubai offshore assets demonstrated to us both the potential benefits of forming a closer alliance. We are very excited by the prospects to continue our growth as part of the wider Petrofac group."

Through its three divisions, Engineering & Construction, Operations Services and Resources, Petrofac designs and builds oil and gas facilities; operates, maintains or manages facilities and trains personnel; and, where return criteria are met and service revenue synergies identified, co-invests with clients and partners. Petrofac's range of services allows it to help meet its clients' needs across the life cycle of oil and gas assets.

With approximately 8,000 employees, Petrofac operates out of four strategically located international centres, in Aberdeen, Sharjah, Woking and Mumbai and a further 13 offices worldwide. The predominant focus of Petrofac's business is on the UK Continental Shelf (UKCS), Africa, the Middle East, the Commonwealth of Independent States (CIS) and the Asia Pacific region.