Petrofac Divests UAE Engineering Arm to Mason-led Consortium to Cut Debt

Petrofac has finalized the sale of its UAE-based Engineering & Construction (E&C) business to a consortium of investors led by Mason Capital Management. The transaction is a primary component of the London-listed energy services provider’s ongoing financial restructuring aimed at improving liquidity and reducing group debt. Divestment Details and Asset Transfer The sale involves the transfer of Petrofac’s E&C operations within the Emirates, a division that has historically managed substantial onshore and offshore infrastructure projects for national oil companies. While the final transaction value was not explicitly detailed in the completion announcement, the move is designed to offload capital-intensive liabilities from Petrofac’s balance sheet, which reported a net debt of $583 million at the end of 2023. The buyer, a group of investors spearheaded by Mason Capital Management, takes control of the unit as Petrofac pivots its strategy. The company is currently focusing on its core markets and higher-margin service contracts to stabilize its fiscal position following a period of restricted access to performance guarantees and project payment delays. Impact on UAE…