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Petrofac Sells Balance 51% Stake in of Mexican Operations to Perenco

Gasoil News - Published on Tue, 24 Sep 2019

Image Source: zawya
Petrofac Limited announced that it has signed an agreement to sell its remaining 51% interest in its operations in Mexico, including Santuario, Magallanes and Arenque, to Perenco (Oil & Gas) International Limited. 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 USD 37.5 million upon signing and a further minimum payment of USD 82.5 million upon completion. The total consideration of up to USD 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 transaction will be effected by the sale of Petrofac’s remaining 51% interest in Petrofac Netherlands Holding B.V., which indirectly holds the Santuario Production Sharing Contract, the Magallanes Production Enhancement Contract (a tariff-per-barrel-based service contract) and the Arenque Production Enhancement Contract.

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Posted By : Ratan Singh on Tue, 24 Sep 2019
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