Oil service company Petrofac has agreed to sell the JSD6000 offshore vessel project to Shanghai Zhenhua Heavy Industries Co (ZPMC).
UK-headquartered Petrofac placed an order for the deepwater derrick lay vessel with ZPMC in China in 2014. But the contract was terminated in October 2015, with Petrofac saying it had decided to “review its options”.
The transaction comprises a gross consideration of £135million and a 10% interest in a new special purpose vehicle set up to own the vessel once commissioned.
Petrofac will provide technical support for the construction of the vessel, which is expected to be completed in 2022. But Petrofac will not contribute to the cost of construction, commissioning or testing of the vessel.
The proceeds from the sale will be used to reduce gross debt.
Petrofac chief executive Ayman Asfari said: “This agreement materially completes our disposal of the project, in line with our stated intention to exit the deep-water market.
“It is a further positive step in the execution of our stated strategy to focus on our core strengths, deliver organic growth and reduce capital intensity.”
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