Petrofac announced Wednesday that it completed the sale of subsidiary Petrofac GSA Holdings Limited which owned Petrofac's 20 percent interest in the Greater Stella Area (GSA) development and its 24.8 percent interest in the FPF1 floating production facility to Ithaca Energy (U.K.) Limited.
Greater Stella Area is located in the heart of the Central Graben area of the Central North Sea, on the U.K. Continental Shelf. Ithaca Energy is an oil and gas operator focused on North Sea production, appraisal and development activities.
The British oilfield services provider had announced the agreement to sell its interest in the GSA development back on Aug. 24.
According to Petrofac’s statement, the gross consideration on completion was $146 million including a net working capital adjustment and a $3 million contingent payment relating to FPF1 uptime.
Net consideration was $106 million, comprising gross consideration less free cash flow generated since the transaction’s effective date of Jan. 1, 2018.
According to the statement, Ithaca will pay a further $120 million of non-contingent deferred consideration in the period 2020-2023, with a further $25 million of contingent consideration payable depending on field performance.
Petrofac GSA Holdings Limited also owned Petrofac's long-term receivables from the GSA joint operation partners.
By Hale Turkes
Anadolu Agency
energy@aa.com.tr