Global law firm Norton Rose Fulbright has advised Petrofac on the sale of 49 per cent of the company’s upstream operations in Mexico, to Perenco, an independent Anglo-French oil and gas company. The transaction is subject to approval by the Federal Competition Commission of Mexico (COFECE), expected in Q4 2018.
Petrofac is a leading international service provider of oilfield services to the oil and gas industry.
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 total consideration comprises a fixed amount and contingent consideration depending upon a number of future milestones, including future field development and migration terms of Petrofac’s Magallanes and Arenque Production Enhancement Contracts. This final amount is subject to adjustment based on achievement of the milestones above and will be capped at US$274 million. Proceeds from the sale will be used to reduce gross debt.
The Norton Rose Fulbright team was led by senior consultant Kimberley Wood and senior associate Hussain Kubba, assisted by associate Nathaniel Gordon, in conjunction with the Norton Rose Fulbright team in Mexico led by partner Hernan Gonzales Estrada and supported by senior associate Dante Trevedan, and involved partner Mario Piana Yanez.
Kimberley Wood commented:
“We are delighted to have worked closely with Petrofac on this significant deal in Mexico, with our teams in London and Mexico City assisting throughout the transaction process and providing support to Petrofac’s teams in both jurisdictions, demonstrating not only our upstream sector expertise, but also our regional experience which were relevant to the project. We look forward to continuing to work with Petrofac towards successful completion of the transaction in the coming months.”
For further information please contact:
Kate Farrell, Public Relations Executive
Tel: +44 (0) 20 7444 3724; Mob: +44 (0) 7515 324 290
Notes for editors:
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