Oilfield services provider Petrofac has sold its remaining 51 percent stake in Mexican operations to Perenco.
Petrofac said on Thursday that it had signed an agreement to sell its remaining interest in its Mexican operations to Perenco.
This includes contracts for work on the Santuario and Magallanes onshore fields as well as the Arenque offshore field.
The company added 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.
According to the service provider, 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 $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. Proceeds from the sale will be used to reduce gross debt.
Petrofac’s CEO Ayman Asfari said: “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.”
Perenco CEO, Benoit de la Fouchardière, added: “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.”
The Magallanes and Santuario contracts were signed with Pemex for the increase of production and management of ongoing operations and maintenance and are scheduled to end in 2036 and 2042, respectively.
The contract for the Arenque offshore field is also with Pemex and has an end date set for 2042. The project is located in the Gulf of Mexico, 30 kilometers offshore from Tampico.
Petrofac was awarded a production enhancement contract for the Arenque field in 2012, becoming the first foreign company to operate a shallow water field in Mexico for more than 70 years. Asset operations were transitioned to Petrofac in 2013.
The scope of work includes field development and operations, including subsurface and facilities engineering, drilling, project execution, and operations management.
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