Oilfield company Petrofac warns it will take a £43million hit as it bails out of North Sea projects
Oilfield company Petrofac has warned that it take a £43 million hit to its books on the sale of its stakes in some North Sea oil projects.
It is to offload its 20 per cent stake in the Greater Stella area development as well as its 25 per cent stake in a floating rig project. Both projects are located in the North Sea.
Energy firm Ithica is to take on the assets and will pay up to £227 million.
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Ithaca will pay £113 million on completion and a further £93 million between 2020 and 2023.
The remainder of the amount will be paid depending on performance.
Petrofac chief executive Ayman Asfari said ‘This disposal marks a further milestone in our journey back to a capital-light business and, along with recently-agreed transactions in Mexico and Tunisia, marks the significant progress we are making on our stated strategy.’
The announcement comes as Premier Oil enjoys abundant oil from the Catcher field, demonstrating the mixed fortunes being experienced by companies in the North sea.
It is understood that discussions are underway with contractors about raising production further.