Petrofac has signed an agreement to sell 49 per cent of stake in its Mexico operations, including Santuario, Magallanes and Arenque, to European player Perenco.
The stakes involves the Santuario Production Enhancement Contract that covers the onshore Santuario block in Tabasco State, central Mexico. The Magallanes Production Enhancement Contract (a tariff-per-barrel-based service contract) is also based in the Tabasco State and the Arenque Production Enhancement Contract which located 30 km offshore from Tampico.
The transaction is subject to approval by the Federal Competition Commission of Mexico (COFECE), which is expected in the last quarter of 2018.
Under the terms of the agreement, Perenco will pay an initial cash consideration of US$200 million, with US$30 million payable upon signing and US$170 million payable upon completion. The final amount will be capped at US$274 million.
Petrofac’s Group Chief Executive, Ayman Asfari said: “We are delighted to welcome an experienced partner in Perenco to our Mexican operations. They bring strong technical capability that will complement our existing brownfield operations experience to strengthen our offering. We look forward to working with them and the other stakeholders to further develop our mature field interests in Mexico.”
Perenco’s CEO, Benoit de la Fouchardiere, said: “Following a previous successful collaboration with Petrofac we have been delighted to explore further opportunities to work together. Mexico is a land of opportunities, a new play, a new country and an exciting new challenge for Perenco. Partnering with Petrofac in Mexico will give us a fantastic opportunity to reach our goals in a timely manner and, by our results, demonstrate to the State company Pemex that we can also be a partner of choice for the future.”