Petrofac, the international oil & gas facilities service provider, announces that it has acquired a 51% interest in SPD Group Limited (SPD), a specialist provider of well operations services, for a total consideration of $7 million (adjusted for surplus cash), comprised of $5 million in cash and $2 million to be satisfied through the issue of 274,938 new Ordinary Shares. Petrofac may, or may be required to, acquire the remaining 49% of SPD for a cash consideration which will be determined by the level of future profitability and which will in no event exceed $30 million.
Based in Dubai and Aberdeen, SPD’s main areas of expertise are well project management, well engineering optimisation, well engineering studies and consultancy services. With around 70 staff and associates, SPD is managing well operations in Africa, Europe and the Middle East as well as supporting the operations of national and international oil companies in the Middle East, Europe and Africa. SPD was recently awarded the contract to provide well operations management services in support of Petrofac’s operations management responsibilities for Dubai’s offshore oil & gas assets.
Ayman Asfari, group chief executive of Petrofac, commented: “We are delighted with this acquisition which brings in-house an important service capability as we seek to provide a broader offering to our clients. SPD’s management team has achieved a significant presence in its market and we look forward to working with them to continue this growth.”
Clive Smith, managing director of SPD, commented: “Working with Petrofac on the Dubai offshore assets demonstrated to us both the potential benefits of forming a closer alliance. We are very excited by the prospects to continue our growth as part of the wider Petrofac group.”
Application is being made to the London Stock Exchange and the UK Listing Authority of the FSA to admit the 274,938 new ordinary shares of $0.025 each in Petrofac Limited, to be issued as consideration to the Official List. The new ordinary shares, each fully paid, will rank pari passu with the existing ordinary shares.
Copies of this announcement will be available for fourteen days from the offices of Credit Suisse (Europe) Limited, One Cabot Square London E14 4QJ.