Petrofac Sells Mexico Assets to Perenco

Friday, September 20, 2019

Oilfield services company Petrofac Ltd said on Thursday it would sell the remaining 51% interest in its Mexican oilfields for up to $276 million to Anglo-French oil and gas company Perenco.

Petrofac, which had offloaded a 49% stake in the operations to Perenco last year, said the sale includes interests in onshore fields Santuario and Magallanes as well as offshore field Arenque and that it plans to use the proceeds to cut debt.

"This disposal reinforces our position as a capital-light business and represents further progress in our stated strategy to enhance returns," Petrofac Chief Executive Officer Ayman Asfari said in a statement.

The Mexico contracts are part of Petrofac's capital-intensive Integrated Energy Services upstream business.

The company has been facing a tough year after a probe by the UK's Serious Fraud Office into its contract dealings in Saudi Arabia and Iraq forced it to warn of lower revenue for 2020.

Petrofac's shares were down 1.1% at 424.6 pence as of 1312 GMT.


(Reporting by Yadarisa Shabong in Bengaluru; Editing by Anil D'Silva)

Categories: Finance North America

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