17 May 2006
Investment in UK North Sea Interest
Petrofac, the international oil & gas facilities service provider, announces that its Resources division has increased its interest in Block 9/28a Part B (containing the Crawford Field, recently known as Cragganmore) from 5.58% to 29% and become the operator of the field.
Petrofac Resources has acquired the 55.3% operated interest of Tuscan Energy (Cragganmore) Limited (Tuscan) and agreed to sell, on the same terms and conditions, part of the acquired interest to the other existing partners, Fairfield Acer Limited (Fairfield) and Stratic Energy (UK) Ltd (Stratic). Upon completion, Petrofac will have a 29% interest in the field, Fairfield will have 52% and Stratic 19%.
Following completion of the sale to Fairfield and Stratic, the net consideration paid for the acquisition of Petrofac’s additional interest will amount to approximately US$1 million. Petrofac has assumed liability for the contingent payments due under Tuscan’s original purchase agreement, comprising a payment should a field development plan be approved and subsequent payments should certain production levels in the field be achieved.
Following satisfaction of the conditions precedent relating to the sale to Fairfield and Stratic and completion thereof, Petrofac’s share of these contingent payments will amount to up to US$8.5 million.
Ayman Asfari, Petrofac Group Chief Executive, commented: “With these changes to the field ownership and our role as operator, we believe we are in a better position to assess the viability of this previously abandoned asset.”