Petrofac Completes Mexico Sale
Petrofac Limited (LON: PFC) announced Tuesday that the group has completed the sale of its remaining 51 percent interest in its upstream operations in Mexico to Perenco Energies International Limited.
Following the deal, which includes Santuario, Magallanes and Arenque, Perenco now owns 100 percent of the operations in Mexico. The transaction “largely completes” the group’s program to dispose of non-core assets, Petrofac noted.
In total, Petrofac has received $120.2 million to date from the sale of its 51 percent interest in its Mexican operations. Further consideration of up to $155.8 million is potentially receivable, according to Petrofac, which outlined that proceeds from the sale will be used to reduce gross debt.
Of the $155.8 million outlined above, $80.2 million plus interest is payable on completion but disputed by Perenco, Petrofac revealed. Petrofac noted that it will initiate formal legal proceedings against Perenco to recover this balance. The remaining $75.6 million is contingent on future milestones, including field development, commercial, service contract transition and fiscal terms, Petrofac highlighted.
In September last year, Petrofac announced that it had signed an agreement to sell its remaining 51 percent interest in its operations in Mexico. In a statement released on its website at the time, Petrofac revealed that the terms of the transaction were substantially the same as the sale of a 49 percent non-controlling interest to Perenco in October 2018.
“This disposal reinforces our position as a capital-light business and represents further progress in our stated strategy to enhance returns,” Petrofac Group Chief Executive Ayman Asfari said in a company statement in September last year.
“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,” he added in the statement.
In December 2018, Petrofac announced that it had completed the sale of its entire 45 percent share in the Chergui asset in Tunisia to Perenco. During the same month, Petrofac revealed that it had completed the sale of Petrofac GSA Holdings Limited to Ithaca Energy (UK) Limited.
Petrofac describes itself as a leading international service provider to the energy industry. The company has 31 offices and around 10,700 staff worldwide, comprising more than 80 nationalities, its website shows.
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