Petrofac Completes Business Sale to CBI

CB&I consummated the acquisition of Petrofac Ltd's Asset Solutions business, saving jobs for about 3,000 workers, the companies said Thursday.

"The sale of Asset Solutions was achieved against a difficult backdrop, and reflects a good outcome for all stakeholders", Petrofac co-administrator James Bennett said in an online statement issued by the British energy engineering company.

Mark Butts, president and chief executive of The Woodlands, Texas-based CB&I, said in a separate statement, "This acquisition strengthens CB&I's portfolio with a complementary reimbursable contracting business, delivering predictable cash flow and enhancing service capabilities".

"It also supports CB&I's diversification into integrated services, expands customer relationships, and opens pathways for growth in international markets", Butts added.

CB&I, owned by a consortium of investors led by Mason Capital Management LLC, designs and builds bulk liquid storage facilities, tanks and terminals.

"The acquisition provides Asset Solutions with access to CB&I's strong, debt-free balance sheet and global liquidity, enabling the business to operate from a position of financial strength", CB&I said. "This enhanced stability ensures continuity of service delivery for customers and creates a solid platform for expanding capabilities across key markets internationally".

Petrofac, under administration since last year, won a vote by creditors on January 30, 2026 for a "company voluntary arrangement" (CVA) that would allow it to complete the divestment. Later one of the creditors, HM Revenue and Customs (HMRC), challenged the CVA but lost before a Scottish court and decided not to appeal, according to a Petrofac statement March 25.

In the case, HMRC argued the CVA was unfair to the tax agency's claims, tied to historical National Insurance Contributions (NICs) for workers. The NICs made HMRC an involuntary creditor, according to the Court of Session ruling, published on the website of the Scottish Courts and Tribunals Service.

Proceeds from the sale to CB&I would be used to settle creditor claims through an allocation plan that prioritizes "secured creditors", according to the judgment March 25. Petrofac does not treat HMRC as a secured creditor. HMRC is among creditors "whose claims will be compromised and released by the CVA, in exchange for a pro rata share of a fund derived from the proceeds of the sale transaction, calculated in accordance with a formula set out in the CVA", Lord Sandison said in the ruling.

The sale, announced December 24, 2025, had been agreed on a "debt-free, cash-free" basis. 

On March 17, 2026 Petrofac said it had signed an agreement to divest its business in the United Arab Emirates to an investor consortium led by Mason Capital Management and Pearlstone Alternative (UK) LLP. 

"Petrofac Emirates encompasses Petrofac's core engineering and construction (E&C) capability, including the E&C execution teams in the UAE, Chennai and Mumbai", Petrofac said.

The deal "preserves Petrofac's execution and engineering capability and delivers continuity for the contracts currently under execution", said Petrofac chief executive Tareq Kawash.

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