Perenco farms into Petrofac fields in Mexico

Under an agreement signed with E&P player Perenco, Petrofac will transfer 49% stakes in its Santuario, Magallanes and Arenque fields in Mexico, the company said in a statement released Monday.

In exchange for the stakes, Perenco will pay an initial cash consideration of USD 200 million, as well as a contingent consideration of as much as USD 74 million, based on “future milestones, including future field development and migration terms of Petrofac’s Magallanes and Arenque production enhancement contracts,” the statement said.

The company expects to gain regulatory approval for the deal in Q4 2018.

“[Perenco brings] strong technical capability that will complement our existing brownfield operations experience to strengthen our offering,” Petrofac group CEO Ayman Asfari said in the statement. “We look forward to working with them and the other stakeholders to further develop our mature field interests in Mexico.”

Petrofac has been working in Magallanes and Santuario since 2011, and in Arenque since 2012. The company holds enhanced production contracts with NOC Pemex, under which it has been working to improve recovery factors and increase output.