London, October 19 - Neftegaz.RU. Oilfield services provider Petrofac has completed the sale of 49% of its operations in Mexico to Perenco, following approval from the Federal Competition Commission of Mexico.
Under the terms of the sale, announced on July 30, 2018, Petrofac has been paid an initial cash consideration of $200 million, comprising $30 million paid upon signing and $170 million on completion, for its business including Santuario, Magallanes and Arenque.
Petrofac said in July that the proceeds from the sale will be used to reduce gross debt. The total consideration is capped at $274 million and comprises both fixed and contingent consideration dependent upon the achievement of future milestones, including the future field development and migration terms of Petrofac’s Magallanes and Arenque Production Enhancement Contracts.
Petrofac’s Magallanes contract with Pemex has an end date set for 2036. Petrofac’s Arenque contract is also with Pemex and it has an end date set for 2042. The Arenque offshore field was discovered by Pemex in 1967 and was the 1st exploration well in the area to be successfully tested in the San Andres formation.
Petrofac was awarded a Production Enhancement Contract in 2012 for the Arenque field – becoming the first foreign company to operate a shallow water field in Mexico for more than 70 years.