[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.