Petrofac, a leading provider of oilfield services, today announced that it had won $120m (£92.9m) in new contracts as it continues its expansion into new geographies.
The FTSE 250 company said that it had agreed to purchase US firm W&W Energy Services, a provider of production and infrastructures services to producers in Texas’ Permian basin.
The company said that the deal, which will be worth $22m on completion, would give Petrofac a foothold in the North American market.
John Pearson, chief operating officer, engineering and production services, said: “This bolt-on provides a platform to grow EPS using a low-risk reimbursable services model in the US 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.”
The Jersey-registered firm also said that its engineering and production services division had been awarded its first ever contract in Malaysia, where it will help develop a third boiler at one of the country’s largest fertiliser plants.
It also said it had secured a new three-year deal with an unnamed North Sea operator, along with an extension for its existing engineering services contract with Chevron North Sea.
Pearson said: “Continued diversification into new markets, such as brownfield projects, and new geographies, such as Malaysia, are key tenets of our growth strategy.
“We’re also once again delighted that clients in the North Sea have exercised the option to extend our support for important operations and maintenance and engineering services contracts.”
Earlier this year a Serious Fraud Office investigation into Petrofac has made the company lose out on $10bn (£7.8bn) of contracts.
Alastair Cochran, the firm’s chief financial officer, said that a guilty plea from its former head of sales, David Lufkin, came just as Petrofac was bidding for contracts.
The oilfield servicer lost about $2bn to $3bn worth of Saudi Arabian and Iraqi orders in the first half.
Meanwhile, around $10bn in deals were not considered by its clients, Cochran said in a call with analysts.
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