Published: December 18, 2019 |

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Petrofac Limited has signed a sale and purchase agreement with the shareholders of W&W Energy Services to acquire an entry-level position in the U.S. onshore operations and maintenance market.

W&W offers maintenance, repair, and overhaul and pipeline tie-in services in the Permian Basin, the world’s largest producing basin. This bolt-on acquisition is in line with Petrofac’s stated strategy to position engineering and production services (EPS) for growth by diversifying into new markets and geographies.

Transaction consideration comprises firm and deferred cash payments, aggregating to a total consideration of 4.5x average W&W EBITDA for the period 2019-21. Petrofac will pay an initial cash consideration of $22 million on completion.

“This bolt-on provides a platform to grow EPS using a low-risk reimbursable services model in the U.S. onshore services market. As production volumes, infrastructure support requirements and the activity of major operators rise in the Permian, we are confident that the combination of W&W’s footprint and strong local brand with Petrofac’s engineering and modifications capability and global track record can unlock growth,” said John Pearson, chief operating officer, Engineering and Production Services.

About Petrofac Limited
Petrofac Limited is a service provider to the oil and gas production and processing industry. The Company designs and builds oil and gas facilities; operates, maintains and manages facilities and trains personnel; enhances production, and develops and co-invests in upstream and infrastructure projects.

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