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    Currently holding Tullow Oil & Premier Oil.


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  • September 1, 2017
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TULLOW OIL PLC » Sale of entire stake in Uganda to Total for $575m

News Release

Tullow agrees sale of its entire stake in the Lake Albert
Development Project in Uganda to Total for US$575 million in cash
plus post first oil contingent payments

23 April 2020 - Tullow Oil plc (Tullow) is pleased to announce that it has agreed the sale of its assets in Uganda to Total with an effective date of 1 January 2020.

· Cash payments of US$500 million on deal completion and US$75 million at Final Investment Decision (FID)

· Contingent payments linked to oil price to be paid after production commences

· Principles on tax treatment of the Transaction agreed with Uganda Revenue Authority (URA)

· Transaction marks first step in portfolio management programme to raise in excess of US$1 billion

· Proceeds to be used to reduce Tullow's net debt, strengthening the balance sheet and moving Tullow towards a more conservative capital structure

· Completion subject to a number of conditions, including approval by Tullow's shareholders, entering into a binding tax agreement with the Government of Uganda and the URA that reflects the agreed tax principles and customary government and other approvals; completion of the Transaction is expected in the second half of 2020

Read the full RNS here...

April 23, 2020

TULLOW OIL PLC » Tullow Oil plc - AGM Trading Update

RNS Number : 5704K
Tullow Oil PLC
23 April 2020

Tullow Oil plc - AGM Trading Update

23 April 2020 - Tullow Oil plc (Tullow), issues the following update ahead of its Annual General Meeting which is being held via an audio cast at 12pm today. Details of how shareholders can join the Group's AGM can be found at the end of this update and on This morning Tullow has issued a second press release detailing the sale of its Uganda interests to Total.

Dorothy Thompson, Executive Chair, Tullow Oil plc, commented today:

"I am very pleased with the material progress Tullow has made in the first quarter of this year given the challenges facing the Group after our performance in 2019, the COVID-19 pandemic and recent very low oil prices. This week, we have announced two significant milestones with the agreement to sell our Uganda interests to Total for $575 million in cash and the appointment of our new CEO, Rahul Dhir. The sale of our Uganda assets is an excellent first step towards our target of raising over $1 billion of proceeds to reduce net debt, strengthen the balance sheet and secure a more conservative capital structure.

"Operationally, we are delivering well against our production targets following improvements put in place by our asset team in Ghana and we have made significant changes to the structure and cost base of our organisation. Finally, the recent successful redetermination of our Reserves Based Lending facility (RBL) has underpinned Tullow's liquidity and the strength of our assets.

"I would also like to thank Steve Lucas, who retires from Tullow today at the end of the AGM. Steve has served on Tullow's Board for eight years and has provided great insight, support and expertise as a Non-Executive Director and as Chair of the Audit Committee."

Trading update

· Sale of Uganda interests to Total for $575 million in cash announced this morning; first step in raising >$1 billion in proceeds

· Appointment of new Chief Executive Officer, Rahul Dhir, who will join Tullow from Delonex in July 2020

· Group production delivering in line with expectations in the first quarter of 2020

· Successful redetermination of RBL facility confirming headroom of c.$700 million at start of second quarter

· Thorough business review completed resulting in a smaller, more efficient organisation and reduced cost base


· Group production in the first quarter of 2020 averaged 75,800 bopd, in line with expectations; Tullow's full year guidance remains 70,000 - 80,000 bopd

· Gross production from the Jubilee field averaged 79,200 bopd (net: 28,100 bopd) in the first quarter of 2020. The field continues to perform well with improved uptime and reliable gas offtake allowing recent rates above 90,000 bopd gross

· Gross production from the TEN fields averaged 51,700 bopd (net: 24,400 bopd) in the first quarter of 2020. Work on the Ntomme-9 production well continues and the well is expected to come on stream in June

· Production from the Group's non-operated portfolio averaged 23,300 bopd in the first quarter of 2020, in line with expectations and taking into account planned shut downs at Espoir in Côte d'Ivoire and Ruche in Gabon

· In exploration, Tullow continues to pursue potential farm downs of its exploration licences to reduce equity interests ahead of drilling and further reduce costs


Tullow continues to manage its operations carefully in light of COVID-19 and the Group is adhering to procedures and restrictions put in place by its host countries:

· Production operations in West Africa have so far not been affected. In Ghana, Government exemptions have been made to allow charter flights for oil and gas workers into the country, enabling crew changes to occur. Tullow is then requiring all personnel to self-isolate in Ghana for two weeks before transferring to its FPSOs to ensure that the risk of a COVID-19 outbreak offshore is minimised

· In Kenya, a number of key workstreams have been suspended due to COVID-19 restrictions and while focus remains on the critical activities required for a Final Investment Decision (FID), Tullow will continue to monitor the impact these restrictions may have on the FID target

· In exploration, seismic acquisition continues in Argentina but the seismic programme in Côte d'Ivoire has been interrupted after Force Majeure was declared by the service provider in light of COVID-19 restrictions


· Tullow has agreed to sell its entire stake in the Lake Albert Development Project in Uganda to Total for $575 million in cash plus post first oil contingent payments (see separate announcement released this morning)

· Successfully completed RBL facility redetermination, confirming $1.9 billion of debt capacity and headroom of c.$700 million at start of second quarter

· Further $85 million of cash savings identified to reduce capex to c.$300 million and decommissioning spend to c.$65 million

· 60% of 2020 sales revenue hedged with a floor of c.$57/bbl and 40% of 2021 sales revenue hedged with a floor of c.$53/bbl

· First quarter 2020 realised oil price of c.$56/bbl including the benefit of c.$27 million of net hedge receipts during the period

· Completion of sale of Uganda assets will be the first step towards raising in excess of $1 billon proceeds through portfolio management; continued focus on progressing options to achieve this target

Board & Management

· Appointment of Rahul Dhir as Chief Executive Officer and an Executive Director of the Group from 1 July 2020. Rahul joins Tullow from Delonex Energy, where he was CEO of the Africa-focused oil and gas company. Prior to Delonex, Rahul served as Managing Director and CEO of Cairn India

· Steve Lucas will step down from the Board following today's AGM and Martin Greenslade will take over as Chair of the Audit Committee

Read the full RNS here...

April 23, 2020

TULLOW OIL PLC » Tullow Oil Appointment of Rahul Dhir as CEO

RNS Number : 2660K
Tullow Oil PLC
21 April 2020

News Release

Appointment of Rahul Dhir as CEO of Tullow Oil plc

21 April 2020- Tullow Oil plc (Tullow) is pleased to announce the appointment of Rahul Dhir as Chief Executive Officer and an Executive Director of the Group. Rahul will take up his appointment from 1 July 2020 and Dorothy Thompson, currently Executive Chair of Tullow, will return to her position as Non-Executive Chair after a limited period of handover.

Rahul brings extensive leadership experience in oil and gas to Tullow. He is currently CEO of Delonex Energy, an Africa-focused oil and gas company that he founded in 2013. Under his leadership, Delonex has delivered low-cost drilling and seismic operations along with leading social and environmental performance in sub-Saharan Africa. In Chad, the company has achieved material exploration success and discovered substantial oil resources. Delonex has also delivered exploration campaigns in Ethiopia and Kenya where Delonex operates Block 12A with Tullow as a non-operating partner.

Prior to establishing Delonex, Rahul served as Managing Director and CEO of Cairn India from its IPO in 2006 until 2012. During Rahul's tenure, Cairn India delivered operated production of over 200,000 barrels of oil per day with operating costs of less than $5 per barrel of oil. Cairn India also successfully delivered over $5 billion of development projects including the world's longest heated pipeline at a finding and development cost of less than $5 per barrel of oil.

Rahul started his career as a Petroleum Engineer, before moving into investment banking where he led teams at Morgan Stanley and Merrill Lynch, advising major oil & gas companies on merger and acquisition and capital market related issues. Rahul is a UK citizen and was educated at the Indian Institute of Technology (BTech), the University of Texas (MSc) and the Wharton School (MBA).

Dorothy Thompson, Executive Chair of Tullow Oil Plc, commented today:

"I am delighted to welcome Rahul to Tullow and am very pleased that he has accepted the position of CEO. His oil & gas, financial and African experience combined with his record of strong leadership made him the stand-out candidate for the Board. I look forward to Rahul joining Tullow in July and working with him closely in the coming years."

Rahul Dhir, Chief Executive Officer-designate of Tullow Oil plc, also commented today:

"I am very excited at the opportunity to lead Tullow and re-establish it as an iconic company in our industry. The company has high-quality assets and great people. It also has a unique position in Africa, built on a proven track record of responsible operations, strong relationships and a commitment to sustainability. I am looking forward to working with the team and the Board to re-build an exceptional business."

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is being released on behalf of Tullow by Adam Holland, Company Secretary.

April 21, 2020


RNS Number : 8559J
Petrofac Limited
16 April 2020

Press Release

16 April 2020


Petrofac Ltd ("Petrofac" or "the Company") announces that its Petrofac Emirates joint venture has received notice of termination from Abu Dhabi National Oil Company (ADNOC) of two recently awarded contracts for the Dalma Gas Development Project. Petrofac is committed to working with ADNOC over the coming weeks to explore alternative options to deliver this project in a way that supports their strategic objectives within the current challenging environment.

The project, worth around US$1.65billion, and awarded in February 2020, comprised two packages. Petrofac Emirates' portion of the scope of work is valued at US$1.5billion.

Petrofac continues to progress execution of its remaining Group backlog of around US$7billion as planned and is still progressing with tendering for major contracts in Abu Dhabi. However, it anticipates this development may have an impact on the timing of their awards.

April 16, 2020

PETROFAC LTD » New Petrofac Contract

Sharjah National Oil Corporation (SNOC), today announced that its Moveyeid Gas Storage Surface Facility Project has been awarded to Petrofac Facilities Management International Limited

March 24, 2020

PETROFAC LTD » Petrofac awarded US$40 million project

Petrofac awarded US$40 million project by Sharjah National Oil Corporation

Petrofac’s Engineering & Production Services division (EPS) has been awarded an engineering, procurement, construction and commissioning (EPCC) contract by Sharjah National Oil Corporation (SNOC), worth around US$40 million, for a project in the United Arab Emirates.

The award demonstrates delivery against EPS’s strategy to secure smaller greenfield and brownfield EPC projects, utilising its footprint and infrastructure in existing core markets.

Mani Rajapathy, Managing Director, EPS East, commented:
“We are delighted to be awarded this contract by Sharjah National Oil Corporation, a longstanding Petrofac client that we have worked with successfully for many years. The award is important strategically as EPS looks to develop its track record in smaller greenfield and brownfield EPC projects. It also leverages Petrofac’s best-in-class expertise and experience in upstream gas and represents another win in one of our core markets of Sharjah and the UAE. We look forward to delivering a safe and successful project for SNOC.”

Petrofac has been present in the UAE since 1991. The Group employs around 3,000 people in country, many of whom are based at Petrofac’s major operational centre in Sharjah.

February 20, 2020



Petrofac Emirates has been awarded two contracts, together worth around US$1.65 billion with Abu Dhabi National Oil Company (ADNOC) in the United Arab Emirates.

The engineering, procurement (including novated long lead items), construction, transportation, offshore installation and commissioning contracts are for ADNOC's Dalma Gas Development Project. The work scope encompasses offshore packages at Arzanah island and surrounding offshore fields, located around 140 km off the north-west coast of the Emirate of Abu Dhabi.

The first package, valued at US$1.065 billion, is for gas processing facilities at Arzanah island. Under the terms of the 33-month lump-sum contract awarded to Petrofac, the scope of work includes inlet facilities with gas processing and compression units, power generation units, utilities and other associated infrastructure.

For the second package, valued at US$591 million, Petrofac is leading a Joint Venture with SapuraKencana HL Sdn. Bhd. Abu Dhabi. Under the terms of the 30-month lump-sum contract, the scope of work includes three new well-head platforms, removal and replacement of an existing topside, new pipelines, subsea umbilicals, composite and fibre optic cables.

The Dalma project is a key part of the Ghasha ultra-sour gas concession which is central to ADNOC's strategic objective of enabling gas self-sufficiency for the UAE.

George Salibi, Chief Operating Officer - Engineering & Construction, commented: "Petrofac has a strong track record in the UAE, with a presence here since 1991 and around 3,000 staff in country. We are fully committed to supporting continued and sustainable investment in Abu Dhabi's oil and gas industry through our strategic focus on maximising local delivery, and are pleased that our approach will generate substantial In-Country Value for the local economy. These latest contract awards build on our existing relationship with ADNOC Group companies and we look forward to delivering this mega project in a safe, successful and sustainable manner."

Established in the UAE in 1991, with operational centres in Abu Dhabi and Sharjah, Petrofac has executed 11 major EPC projects in-country to date. Recent projects include the Upper Zakum UZ750 project, Qusahwira Field Development Phase II, the Satah Al Razboot (SARB) Package 3, the contract for expansion of compression facilities at the Bab field and development of the Bab Habshan-1 project.


February 18, 2020

TULLOW OIL PLC » Marina-1 well result

Tullow Oil plc (Tullow) announces that the Marina-1 exploration well, drilled on Z-38 licence offshore Peru, has reached Total Depth and has not encountered significant hydrocarbons. The well tested the La Cruz and Mal Pelo formations where minor gas shows were encountered however there were no indications of hydrocarbons in the primary targets in the Tumbes formation.

The Stena Forth drillship drilled the Marina-1 well to a Total Depth of 3,022 metres in 362 metres of water and the well will now be plugged and abandoned.

Karoon Energy is the operator of the Marina-1 well through its wholly owned subsidiary, KEI (Peru Z‐38) Sucursal del Peru and has a 40% operating equity interest. Tullow Oil holds a 35% interest with Pitkin Petroleum holding the remaining 25%.
Mark MacFarlane, Chief Operating Officer, commented today:

“This is the first ever well in the deep-water section of the under-explored Tumbes basin. We will now integrate the important well information with the seismic data that we are currently reprocessing and update our prospect inventory for blocks Z-38 and Z-64. Tullow is building an extensive exploration position in Peru and, while this result is not what we had hoped for, we remain positive about Peru’s wider offshore exploration potential.”

February 17, 2020

TULLOW OIL PLC » Total Chief dismisses Tullow Oil takeover idea

ABERDEEN, Scotland (Reuters) - Total Chief Patrick Pouyanne dismissed the idea it might buy its partner in East Africa and Guyana, Tullow Oil, whose share price slumped to 19-year lows in December over a string of bad news, stoking takeover speculation.

Total is a partner in all growth markets for Tullow Oil whose market capitalisation shrank to around 633 million pounds as of Wednesday from 3.28 billion pounds in September. It is slashing its workforce and restructuring its portfolio.

Amid industry speculation about a potential Tullow takeover target, Pouyanne told Reuters when asked whether Total might buy Tullow: "Stop dreaming... No".

As of late 2019, Tullow was saddled with $2.8 billion in debt, a hangover from the last oil price crash which saw Brent crude futures plummet to below $30 a barrel in 2016.

High debts can make buying assets a more attractive option than a corporate sale.

Offshore Guyana, Tullow owns 60% and Total 25% of the Orinduik block, estimated to hold around 5.1 billion barrels of oil equivalent. Total also holds 25% in the Kanuku block, adjacent to Orinduik, in which Tullow holds 37.5%.

While two of Tullow's previous wells in Orinduik produced heavy oil, calling into question the quality of the reservoir, other wells targeting deeper layers have produced lighter oil - reviving hopes for the commerciability of wells targeting the so-called Upper Cretaceous.

Pouyanne said he expected two or three wells to be drilled offshore Guyana this year. Total, Tullow and their Orinduik partner Eco are due to meet this month and discuss next steps for their drilling off Guyana.

In Uganda and Kenya, Total and Tullow have partnered to bring the countries' first oil projects onstream, but both projects have hit snags.

Onshore Uganda, a deal for Tullow to sell a chunk of its stake to Total, fell through in August due to tax disputes with the government.

Uganda's government said in December it had settled the dispute with the companies, but they have not yet confirmed any such deal.

Pouyanne told Reuters discussions were still ongoing, but that Tullow's "financial issues" must also be dealt with.

In Kenya, Tullow and Total aim to reduce their stakes with a joint sale that could see Tullow exit completely amid uncertainty over the project's launch, banking and industry sources said.

Tullow declined to comment.

February 12, 2020

PETROFAC LTD » Unaoil trial

Started 20 January,2020.

For Mention - Case Started 01/11/2019 09:58
For Pre - Trial Review 16/12/2019 09:59
For Trial - Case Started 20/01/2020 10:34
For Trial - Case adjourned until 11:15 20/01/2020 10:53
For Trial - Resume 20/01/2020 12:03
For Trial - Case adjourned until 14:00 20/01/2020 12:27
For Trial - Legal Submissions 20/01/2020 15:05
Trial (Part Heard) - Resume 21/01/2020 10:13

January 21, 2020

PETROFAC LTD » Petrofac secures US$130 million in PDO awards

RNS Number : 3737Y
Petrofac Limited
31 December 2019

Press Release

31 December 2019


Petrofac announces today a new contract and the award of an additional scope of work with Petroleum Development Oman (PDO), with a combined value of approximately US$130 million.

The new contract award, under a 10-year Framework Agreement signed in 2017 with PDO, is an Engineering, Procurement and Construction Management (EPCM) services contract for the Mabrouk North East Development Project in Oman.

The full field development of Mabrouk North East field is planned to be executed in a phased approach. The 34-month project scope awarded involves the development of 16 gas producing wells and export of the production to the Saih Rawl Central Processing Plant. The project will be integrated with the Mabrouk North East Line Pipe Procurement Project, which was awarded to Petrofac in June 2019.

The other scope of work awarded is to provide further services for PDO's Yibal Khuff Project. This 20-month contract includes detailed Engineering, Procurement, and support for Construction and Commissioning of nine additional wells to improve overall plant production, and laying of gas pipeline from Yibal "A" to the main processing facility.

The Yibal Khuff Project, originally awarded to Petrofac in June 2015, is already in an advanced phase of construction and pre-commissioning, and the delivery of additional wells is to be synchronised for overall readiness.

Elie Lahoud, Group Managing Director, Engineering & Construction said: "This latest project award under the long-term framework agreement with PDO for Mabrouk North East, and additional scope of work for the Yibal Khuff Project, both further underpin our significant track record and commitment to delivering value in Oman. Our focus will remain on safe operations and maximising in-country value through the continued development of local workforce competence and strong supply chain partnerships."

December 31, 2019

PETROFAC LTD » I've Bought more PFC this morning.

I Bought a 5000 tranche at 379.524p and a 2943 tranche at 378.6985p

December 19, 2019

PETROFAC LTD » PFC - Project management services contract with BP

Petrofac, in a joint venture (JV) with the State Oil Company of the Republic of Azerbaijan (SOCAR), has secured a Project Management Services contract to support BP’s operations in Azerbaijan and Georgia.

The three-year contract will support both onshore and offshore activity for BP operated projects in the Caspian Sea area including Azeri-Chirag-Gunashli (ACG), Shah Deniz, Baku-Tbilisi-Ceyhan (BTC), South Caucasus Pipeline (SCP) and Western Route Export Pipeline (WREP).

Mani Rajapathy, Managing Director, Petrofac EPS East, commented:
"We continue to expand our service offering in the region with our key partner SOCAR. Petrofac has been active in Azerbaijan for over 15 years, providing skills development opportunities and services across the country’s oil and gas and petrochemical industries, so this award further underpins our international presence. We have worked with BP previously in the region and we are well positioned and committed to providing safe, reliable and efficient support in the delivery of their significant projects moving forwards in Azerbaijan and Georgia."

Khalik Mammadov Vice President, SOCAR, said:
"We have established a successful partnership with Petrofac that continues to flourish, the Joint Venture combines our respective experience, local knowledge and depth of capabilities. I am delighted with this latest award to support BP in the Caspian region, which has become one of the major oil and gas producing areas in the world."

December 16, 2019

PETROFAC LTD » Petrofac secures North Sea engineering frameworks

Petrofac has secured two new Framework Agreements (FAs) for the provision of Engineering, Procurement, Construction and Commissioning (EPCC) services.

The first, a three-year FA awarded by EnQuest as part of a multi-contractor framework, covers EPCC services across the Operator’s North Sea and onshore asset base.

The second EPCC FA, awarded by a Southern North Sea Operator, is for an initial two-year period with options to extend.

Petrofac has now secured seven such frameworks in the UK in 2019, demonstrating its continued focus on the growth of its brownfield projects business.

Future work undertaken through the frameworks will be supported by Petrofac’s Aberdeen office, where the company is actively investing in its engineering team and brownfield management system in support of its ongoing digitalisation strategy.

Nick Shorten, Managing Director for Petrofac’s Engineering and Production Services business in the Western Hemisphere said:
"In a mature basin like the UKCS, technical certainty and predictable delivery are critical success factors. The award of these FAs recognises our ability to combine our extensive engineering and construction expertise and offshore operations experience to drive repeatable project outcomes.

We very much look forward to building on the success of our existing relationship with EnQuest by safely supporting it to enhance recovery and extend field life in the North Sea."

December 12, 2019

PETROFAC LTD » Petrofac to collaborate on global wells programme

Petrofac’s Engineering and Production Services division (“EPS”) has signed a well management contract under Maersk Drilling’s master alliance agreement with Seapulse Ltd, a global exploration company.

Under its alliance with Seapulse, Maersk Drilling is responsible for providing fully integrated drilling services, including provision of drilling rigs and all related services for a global offshore oil and gas exploration programme. Petrofac has been appointed by Maersk to deliver well management services, including project and supply chain management support for shallow water and deepwater wells throughout the duration of the programme. Maersk has also appointed Halliburton to deliver integrated well services.

Two wells in the UK North Sea have previously been announced as part of the work scope which is expected to start drilling in the second half of 2020. A tailor-made process covering all phases in the end-to-end delivery of a well has been developed with the aim to maximise efficiency and remove waste through a novel approach to collaboration in the industry.

Nick Shorten, Managing Director for Petrofac Engineering and Production Services, Western Hemisphere, commented: “Building our well engineering business is a key element of our stated strategy to position EPS for growth in new markets. The aims of the Maersk Drilling and Seapulse alliance closely align with our own operating principles and we are delighted to be part of this exciting global supply chain collaboration. We very much look forward to working with all parties to deliver effective and technically robust campaigns.”

Morten Kelstrup, COO of Maersk Drilling, said: “We’re thrilled to join forces with Petrofac and Halliburton for this programme which breaks new ground in the industry by using a fully integrated service delivery model aimed at eliminating inefficiencies by aligning incentives and removing complexity across the entire value chain. Petrofac and Halliburton bring strong operational expertise and decades of experience in delivering and integrating oilfield services, which will further contribute to the ability to mitigate the operator cost risk associated with exploration drilling whilst we foster new ways of collaborating across the supply chain.”

Scott Aitken, CEO and co-founder of Seapulse, added: “We are very pleased to see the well delivery model that we have entered into with Maersk Drilling continue to mature with world-class partners. The Seapulse business model leverages Maersk Drilling’s partnerships’ technological and operational expertise to drill and test a statistically relevant exploration portfolio of a scale normally only associated with major oil companies.”

December 11, 2019

PETROFAC LTD » PFC Petrofac secures US$120 million in EPS awards

RNS Number : 9572T
Petrofac Limited
20 November 2019

Press Release

20 November 2019


Petrofac Limited ("Petrofac") announces today awards and contract extensions with a combined value of more than US$120 million, delivering against the Group's strategy to position Engineering & Production Services ("EPS") for growth by diversifying into new markets and geographies.

The awards and contract extensions consist of the following:

· EPS has secured its first small-scale Engineering, Procurement, Construction (EPC) contract in Malaysia. In consortium with partner Serba Dinamik, EPS has been awarded a contract by Asean Bintulu Fertiliser (ABF) Sdn Bhd, one of Malaysia's largest fertiliser plants, for its Third Boiler Project. The ABF plant located in the central region of Sarawak, which started commercial production in 1985, is a subsidiary of PETRONAS Chemicals Group Berhad. The work scope for the 30-month project includes basic and detailed engineering, procurement, construction and commissioning of an additional package boiler (165 tonnes per hour) to improve overall plant reliability and availability and meet total steam demands of 510 tph.

· EPS has also secured a new three-year Engineering, Procurement, Construction and Commissioning (EPCC) Framework Agreement (FA) with a North Sea operator. Future projects undertaken through the FA will be supported by Petrofac's Aberdeen office, where the company is actively growing its engineering team and investing in its brownfield management system in support of its digitalisation strategy.

· The new brownfield projects awards coincide with key North Sea contract extensions for EPS, including a two-year renewal of an existing seven-asset Operations and Maintenance contract, and the extension of EPS' existing Engineering Services contract with Chevron North Sea to June 2020.

John Pearson, Chief Operating Officer, Engineering and Production Services, said: "Continued diversification into new markets, such as brownfield projects, and new geographies, such as Malaysia, are key tenets of our growth strategy. We're also once again delighted that clients in the North Sea have exercised the option to extend our support for important Operations and Maintenance and Engineering Services contracts."


November 20, 2019

PETROFAC LTD » Petrofac Limited - PFC Acquisition of W&W Energy S

RNS Number : 9600T
Petrofac Limited
20 November 2019

Press Release

20 November 2019


Petrofac Limited ("Petrofac") announces it has signed a Sale and Purchase Agreement with the shareholders of W&W Energy Services ("W&W") to acquire an entry-level position in the US onshore Operations and Maintenance market.

W&W offers Maintenance, Repair & Overhaul and Pipeline tie-in services in the Permian Basin, the world's largest producing basin. This bolt-on acquisition is in line with Petrofac's stated strategy to position Engineering & Production Services ("EPS") for growth by diversifying into new markets and geographies.

Transaction consideration comprises firm and deferred cash payments, aggregating to a total consideration of 4.5x average W&W EBITDA for the period 2019-21. Petrofac will pay an initial cash consideration of US$22 million on completion. Deferred true-up and earn-out payments will be paid based on W&W's financial performance over the three-year period ended 31 December 2021.

John Pearson, Chief Operating Officer, Engineering and Production Services, said: "This bolt-on provides a platform to grow EPS using a low-risk reimbursable services model in the US onshore services market. As production volumes, infrastructure support requirements and the activity of major operators rise in the Permian, we are confident that the combination of W&W's footprint and strong local brand with Petrofac's Engineering and Modifications capability and global track record can unlock growth."


1) W&W's unaudited EBITDA for the financial year ended 31 December 2018 was US$6.6 million.

2) At completion, W&W's net debt was US$2.8 million.


November 20, 2019

PETROFAC LTD » PFC Contract with JOG

Greater Buchan Area (GBA) Development Contractor Appointments

Jersey Oil and Gas plc is pleased to announce the award of contracts to Rockflow Resources Ltd ("Rockflow") and Petrofac Facilities Management Limited ("Petrofac").

Accordingly, Rockflow will provide subsurface evaluation support and Petrofac will provide facilities and well support for the concept selection phase of the GBA development project.

JOG has developed a close working relationship with both Rockflow and Petrofac during the last two years and both companies were instrumental in supporting JOG in its successful application in the UKCS 31st Supplementary Offshore Licensing Round that resulted in the award of the GBA development opportunity.

Andrew Benitz, CEO of Jersey Oil & Gas, commented:

"I am delighted to announce the award of contracts to both Rockflow and Petrofac. We look forward to building on our valued relationship with both companies as we progress through the critical concept selection phases of the Greater Buchan Area development project".

October 7, 2019


Be cautious buying the dips guys, there is still the threat of Balpa calling additional strike dates. That threat is not off the table, at this time. You saw where the SP went during the strike, so just bare that in mind.


International Airlines Group's (IAG) is updating its full year 2019 operating profit guidance based on recent events.

During September, BALPA's (British Airways main pilots' union) industrial action initially scheduled for the 9, 10 and 27 led to an initial cancellation of 4,521 flights over a period of seven days. Subsequently, 2,196 flights were reinstated leaving 2,325 cancellations. British Airways also introduced flexible commercial policies on 4,070 flights not directly affected by the industrial action. These policies enabled customers to re-book flights or receive a refund. The net financial impact of the industrial action is estimated to be €137 million. In addition, there were further disruption events affecting British Airways in the quarter, including threatened strikes by Heathrow Airport employees, which had a further net financial impact of €33 million.

IAG estimates that the latest booking trends in its low cost segments (primarily Vueling and LEVEL) will have an adverse financial impact of €45 million.

At current fuel prices and exchange rates, IAG therefore expects its 2019 operating profit before exceptional items to be €215 million lower than 2018 pro forma (€3,485 million). Passenger unit revenue is expected to be slightly down at constant currency, compared to flat guidance previously, and non-fuel unit costs are expected to improve at constant currency, unchanged from previous guidance. Capacity growth, measured in ASKs, for the fourth quarter is now expected to be about 2 per cent, which is 1.2 points below previous guidance, and full year capacity growth is expected to be about 4 per cent, compared to 5 per cent previously.

There have been no further talks between British Airways and BALPA. The airline's offer of a 11.5 per cent pay increase over three years still stands and has been accepted by British Airways' other unions, representing 90 per cent of the airline's employees. Clearly any further industrial action will additionally impact IAG's full year 2019 operating profit.

Willie Walsh, IAG's chief executive, and Steve Gunning, IAG's chief financial officer, will host an analysts' conference call at 07:30am UK time (08:30am CET) on Thursday 26 September.

September 26, 2019

PETROFAC LTD » PFC Sells remaining 51% of Mexican Operations

Press Release

19 September 2019


Petrofac Limited ("Petrofac") announces that it has today signed an agreement to sell its remaining 51% interest in its operations in Mexico(1)(2), including Santuario, Magallanes and Arenque, to Perenco (Oil & Gas) International Limited ("Perenco"). 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 US$37.5 million upon signing and a further minimum payment of US$82.5 million upon completion. The total consideration of up to US$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.

Petrofac's Group Chief Executive, Ayman Asfari said: "This disposal reinforces our position as a capital-light business and represents further progress in our stated strategy to enhance returns. We are proud of the work we have done since 2011 to enhance production from our operations in Mexico and, in particular, of the country's first ever contract migration, which we achieved for the Santuario field in partnership with Pemex and the Mexican authorities."

Perenco CEO, Mr Benoit de la Fouchardière, said: "The signing of this agreement to acquire the remaining shares in Petrofac's Mexico operations marks another strategic move for Perenco, which will allow us to accelerate the deployment of our expertise in relation to the Santuario, Magallanes and Arenque assets. We believe that our unique know-how will significantly enhance the production and value of these mature fields and allow us to address all the associated challenges."

"Through our daily performance and the full commitment and support of the Perenco team we will demonstrate to the State company Pemex that we are the clear partner of choice for the future of these types of mature assets."


1) 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.

2) The gross assets being disposed of had a carrying amount of US$666 million at 31 December 2018. The net assets being disposed of had a carrying amount of US$548 million at 31 December 2018. Related non-controlling interest as at 31 December 2018 stood at $266 million. The assets being disposed of made an underlying business performance profit of US$2 million for the year ended 31 December 2018 (51% share equals approximately US$1 million).

3) The uncertainty surrounding the Mexican Energy Reform programme is expected to result in a small non-cash impairment charge. An impairment charge will take into account, inter alia, management's assessment of the fair value of contingent consideration, which will include an assessment of future Production Enhancement Contract transitions.


September 19, 2019