[Editor's note: This story was updated at 9:06 a.m. CT on Sept. 19]
Petrofac Ltd. has signed an agreement on Sept. 19 to sell its remaining 51% interest in its operations in Mexico, including Santuario, Magallanes and Arenque, to Perenco (Oil & Gas) International Ltd.
The terms of the transaction are substantially the same as the sale of a 49% non-controlling interest to Perenco in October 2018. The transaction is subject to regulatory approval and is expected to complete in 2020.
Under the terms of the agreement, Petrofac will receive an initial $37.5 million upon signing and a further minimum payment of $82.5 million upon completion. The total consideration of up to US$276 million comprises a fixed amount and a series of contingent amounts that depend upon future milestones, including field development, commercial, service contract transition and fiscal terms, and is subject to the level of achievement of the milestones above. Proceeds from the sale will be used to reduce gross debt.
“This disposal reinforces our position as a capital-light business and represents further progress in our stated strategy to enhance returns,” Petrofac CEO Ayman Asfari said in a statement.
Recommended Reading
Eni Reports Discovery Offshore Mexico in Block 9
2024-07-10 - Italian energy giant Eni SpA announced a discovery at the Yopaat-1 EXP exploration well in the offshore Mexico Block 9 of the Cuenca Salina in the Sureste Basin, which potential up to 400 MMboe in place.
E&P Highlights: July 10, 2024
2024-07-10 - Here’s a roundup of the latest E&P headlines including TotalEnergies exiting South Africa to focus on opportunities in Namibia.
CNOOC’s Bohai Bay Well Achieves High Yield
2024-07-11 - CNOOC’s Bozhong 19-6 Condensate Gas Field D1 well, the first ultra-deep well in China’s Bohai Bay, is currently producing approximately 6,300 boe/d.
Goodbye Manual Control: Vital Energy’s Automation Program Boosts Production
2024-07-12 - Production, ESP efficiency soared when the company automated decisions with AI at the edge.
VAALCO Reports Increased Reserves After Svenska Deal
2024-07-16 - VAALCO acquired Swedish E&P Svenska’s 27.39% non-operated working interest in the deepwater Baobab Field in Block CI-40, offshore Côte d’Ivoire.