On 30 July 2018, Petrofac Facilities Management Limited announced that it signed an agreement to sell 49% equity to Perenco in its Petrofac Netherlands Holding B.V., its subsidiary that holds the rights in the CNH-M2-Santuario-El Golpe/2017 PSC contract, the AE-0390-M-Arenque exploration and production entitlement and CIEP Service Contract, and the AE-0395-M-Magallanes-Tucan-Pajonal exploration and production entitlement and CIEP Service Contract.Â  The Santurario-El Golpe PSC contract is a production sharing contract (PSC).Â  Petrofac Mexico S.A. de C.V. is the designated operator with a 36% working interest and PEMEX is the lone partner with 64% working interest.Â  The other two CIEP Service Contracts are per barrel fee based service contracts with Petrofac as the service contract operator, PEMEX holding 100% of the working interest.Â  The two CIEP Service Contracts have been in the migration process to a PSC or License contract (CEE) for a couple of years now.    The      terms of the deal were reported to be that Perenco paid USD 30 million      upon signing the agreement and will pay and additional USD 170 million      upon completion of the deal which is pending formal governmental approvals.Â  The total final consideration includes a      fixed amount and contingent consideration pending achieving certain      milestones including future field development and the contract migration      terms for the two legacy CIEP Service Contracts.Â  The final total consideration is subject      to adjustment based on the aforementioned milestones but will be capped at      a maximum of USD 274 million.   During May 2016, the CNH reported that the A-0390-Arenque production entitlement and also a legacy CIEP Service Contract was migrated to an exploration and production entitlement.Â  The denomination for the block changed to the AE-0390-M-Arenque block.Â  This represented the first step in the process to migrate the entitlement to the new PSC or License Contract model (CEE).Â  The entitlement now has a 25 year total term with a three year exploration period and the possible extensions from the original production entitlement granting date of 13 August 2014.Â  The Service Contract is operated by Petrofac Facilities Management Limited who won the block in the PEMEX Service Contract Round in 2012.Â  SENER granted the A-0390-Arenque block to PEMEX 100% on 13 August 2014. It covers an area of 2,035 sq km in the northwestern, offshore Tampico-Misantla Basin. The block contains five oil and gas fields, Arenque, Jurel, Lobina, Merluza, and Nayade.  During May 2016, the CNH reported that the A-0395-Magallanes-Tucan-Pajonal production entitlement and also a legacy CIEP Service Contract was migrated to an exploration and production entitlement.Â  The denomination for the block changed to the AE-0395-M-Magallanes-Tucan-Pajonal blockThe Service Contract is operated by Petrofac Facilities Management Limited who won the block in the PEMEX Service Contract Round in 2011.Â  SENER published in July 2015 that the Magallanes-Tucan-Pajonal field covers an area of 133.1 sq km and had original oil and gas in place (OOGIP) of 909.6 MMboe.Â  The secretariat reported remaining 2P reserves for the field are 32.4 MMboe of 33Â° API. SENER published in July 2015 that the Otates field covers an area of 35.7 sq km and had original oil and gas in place (OOGIP) of 243.7 MMboe.Â  The secretariat reported remaining 2P reserves for the field are 5.3 MMboe of 34Â° API.Â  SENER granted the A-0395 â Magallanes-Tucan-Pajonal block to PEMEX 100% on 13 August 2014.Â  According to SENER the block originally covered an area of 198.85 sq km in the northwestern, onshore Sureste Basin but now covers approximately 164.00 sq km after a part relinquishment for the modification of the entitlement. The block contains two main oil and gas fields, Magallanes-Tucan-Pajonal and Otates.  On 18 December 2017, the CNH signed the contract granting an official award with Petrofac Mexico S.A. de C.V. and PEMEX for the CNH-M2-Santuario-El Golpe/2017 PSC contract (CEE).Â  The contract is a production sharing contract (PSC).Â  Petrofac Mexico S.A. de C.V. is the designated operator with a 36% working interest and PEMEX is the lone partner with 64% working interest.Â  The contract has a basic 25 year term from the 18 December 2017 effective date with the possibility of two, five-year extension periods.Â  During the next six months the operations of the contract area will be handed over to the designated operator by PEMEX and the operator will have to present its first development plan. The Santuario Service Contract area includes the A-0121-Campo El Golpe and the A-0396-Santuario production entitlements granted on 14 August 2014.Â  The migration process has been ongoing since July 2015.Â  PEMEX presented a production and development plan that involves activities over a 12 month period that would start when the new contract is signed, estimated to be June 2017.Â  The company is proposing to conduct 10 minor workovers, eight major workovers, 30 reservoir pressure surveys, three studies, and 12 infra-structure enhancements including oil and gas gathering lines and wellheads.Â  The total estimated cost of the 12 month project is estimated to be USD 13.86 million for development activities and USD 51.1 million for production activities.Â  Service contractor Petrofac is to migrate with the official operator PEMEX.Â  The El Golpe field covers an area of 42.6 sq km and had original oil and gas in place (OOGIP) of 234.8 MMboe. SENER reported remaining 2P reserves for the field are 5.9MMboe of 36Â° API.Â  SENER published in July 2015 that the Santuario field covers an area of 63.5 sq km and had original oil and gas in place (OOGIP) of 557 MMboe. The secretariat reported remaining 2P reserves for the field are 120.6 MMboe of 32Â° API.Â  The Service Contract originally covered an estimated area of 129.93 sq km in the northwestern, onshore Sureste Basin but now covers 153.19 sq km after the two entitlements were granted. The block contains two main oil and gas fields, Santuario and El Golpe and the minor Caracolillo field.Â  The Santuario Service Contract is operated by Petrofac Mexico S.A. de C.V., a subsidiary of London based Petrofac Services Limited, who won the block in the PEMEX Service Contract Round in 2011 after contract signature on 17 October 2011.
Perenco is acquiring 49% in Petrofacâs Mexico assets â including Santuario, Magallanes and Arenque fields for US$200 MM. 