Petrofac said that its subsidiary Petrofac International (UAE) has agreed to sell the JSD6000 deepwater vessel project to Shanghai Zhenhua Heavy Industries (ZPMC) for $190m.
Image: Petrofac has offloaded the JSD6000 project to ZPMC. Photo: courtesy of Petrofac Limited.
The transaction involves the sale of all the related assets of JSD6000, owned by the oilfield services provider, which includes the owner furnished equipment.
The deal also includes sale of a 10% stake in a new special purpose vehicle created to own the offshore vessel after its commissioning.
Petrofac Group CEO 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.”
Petrofac said that it will offer technical support for the construction of the JSD6000 deepwater vessel for a period of four and a half years.
However, the oilfield services provider will not any contribution to thethe cost of construction, commissioning or testing of the offshore vessel, which is likely to be completed in 2022.
Under the terms of the transaction, Petrofac will receive $167m from ZPMC for the sale, as $23m will be retained by it under a previous hull and marine contract with the Chinese company.
Petrofac intends to utilize the sale proceeds to cut down its gross debt.
Ulstein Design & Solutions, which has designed the JSD6000 deepwater derrick lay vessel, wrote on its website that the ship will have J-Lay, S-Lay and heavy lift capabilities. These capabilities enable the vessel to serve deepwater and SURF markets and also shallow water EPCI projects, said the company.