Petrofac Sells its Remaining Mexico Assets

Petrofac Sells its Remaining Mexico Assets
Petrofac exits its Mexico operations with a sale of its ownership in three fields to Perenco.

International oilfield services provider Petrofac Limited has signed an agreement to sell its remaining 51 percent interest in its Mexico operations to UK-based independent Perenco (Oil and Gas) International Limited, the company announced Thursday.

This includes Petrofac’s operations in Santuario, Magallanes (both onshore fields) and Arenque (offshore field). The net assets had a carrying amount of $548 million at Dec. 31, 2018, Petrofac said.

The transaction will grant Petrofac an initial $37.5 million upon signing and an additional minimal payment of $82.5 million upon completion. Petrofac will use the money to reduce debt.

“This disposal reinforces our position as a capital-light business and represents further progress in our stated strategy to enhance returns,” Ayman Asfari, Petrofac’s Group Chief Executive, said in a company statement. “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.”

Petrofac sold 49 percent of its Mexico operations to Perenco back in October of 2018.   

“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,” said Perenco CEO, Benoit de la Fouchardière. “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.”

Fouchardière added, “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.”

The transaction is expected to be completed in 2020.

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