12th Dec 2018 09:10
LONDON (Alliance News) - Petrofac Ltd on Wednesday said it has completed the sale of Petrofac GSA Holdings Ltd to Ithaca Energy UK Ltd for up to a total of USD291 million.
GSA owns a 20% interest in the Greater Stella area development and a 25% interest in the FPF1 floating production facility, both offshore North Sea. In addition to that, GSA has long-term receivables from joint operation partners.
The oilfield services provider said Ithaca will pay an initial USD146 million, plus a further USD120 million of non-contingent deferred consideration between 2020 and 2023.
An additional USD25 million of contingent consideration is payable depending on field performance.
Petrofac said it will use the proceeds to reduce its debt.
Petrofac shares were trading up 0.3% on Wednesday at 464.20 pence each.
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