Petrofac has secured a deal to sell its Asset Solutions business to CB&I, as the in-default British energy engineering company continues to explore options following a failed financial restructuring.
About 3,000 Petrofac employees would join CB&I, a maker of storage facilities, tanks and terminals, the companies said in separate online statements.
“The acquisition strengthens CB&I’s portfolio with a complementary reimbursable contracting model business, delivering predictable cash flow and enhancing service capabilities”, CB&I said. “It also supports CB&I’s diversification into integrated services, expands customer relationships and opens pathways for growth in international markets”.
“Following the close of the transaction, CB&I will operate as one company with two global business units, CB&I Asset Solutions based in Aberdeen, Scotland, and CB&I’s existing operations, CB&I Storage Solutions, based in The Woodlands, Texas”, CB&I said. “Each business will maintain its own delivery accountability within CB&I, enabling focused execution and performance tracking while leveraging CB&I’s corporate functions for strategic alignment, business support and special initiatives”.
“The acquisition will diversify CB&I’s revenue streams through a reimbursable contracting model, which reduces cyclicality and broadens CB&I’s service offering beyond its traditional lump-sum EPC portfolio”, it said.
CB&I president and chief executive Mark Butts said, “With this combination we see strong cultural alignment, diversification benefits and clear opportunities to enhance performance and deliver stable cash flow generation”.
Petrofac said, “The consideration for the sale has been agreed on a debt-free cash-free basis. The ultimate net proceeds from the transaction will depend on the quantum of various deductions which will only be confirmed closer to completion. However, the administrators of the company expect the net proceeds to be in the range of US$45m to US$55m”.
“The net proceeds will be distributed to the secured creditors in accordance with the intercreditor agreement entered into between the company and the secured creditors on 26 October 2021”, Petrofac added.
It said, “Completion of the transaction is subject to certain conditions including approval from certain secured and unsecured creditors of the Assets Solutions business which is currently expected to be obtained by end of January 2026”.
“Petrofac continues to advance options for alternative restructuring and M&A solutions with respect to Petrofac Emirates, its UAE-based operating division, focused on engineering and construction (E&C) activities in the UAE and internationally”, Petrofac added.
On October 23, 2025, Petrofac announced the end of its “advanced stage” restructuring after European grid operator TenneT terminated Petrofac’s scope under a March 2023 contract for six direct current connection projects on the Dutch and German sides of the North Sea, each with a two-gigawatt capacity.
On October 27, 2025, Petrofac said it had applied for administration before the High Court of England and Wales.
“This is a targeted administration of the Group’s ultimate holding company only [Petrofac Ltd]”, Petrofac said.
“The Group’s operations will continue to trade, and options for alternative restructuring and M&A solutions are being actively explored with its key creditors, including the Ad Hoc Group of Noteholders, who are supporting the Group with continued forbearance arrangements whilst alternative options are explored. The Group also retains the support of its RCF and Term Loan lenders who continue to extend maturities on a rolling basis.
“When appointed, administrators will work alongside executive management to preserve value, operational capability and ongoing delivery across the Group’s operating and trading entities”.
On October 28 Petrofac halted trading on the London Stock Exchange after entering into administration.
To contact the author, email jov.onsat@rigzone.com
element
var scriptTag = document.createElement(‘script’);
scriptTag.src = url;
scriptTag.async = true;
scriptTag.onload = implementationCode;
scriptTag.onreadystatechange = implementationCode;
location.appendChild(scriptTag);
};
var div = document.getElementById(‘rigzonelogo’);
div.innerHTML += ” +
‘
‘ +
”;
var initJobSearch = function () {
//console.log(“call back”);
}
var addMetaPixel = function () {
if (-1 > -1 || -1 > -1) {
/*Meta Pixel Code*/
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1517407191885185’);
fbq(‘track’, ‘PageView’);
/*End Meta Pixel Code*/
} else if (0 > -1 && 74 > -1)
{
/*Meta Pixel Code*/
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1517407191885185’);
fbq(‘track’, ‘PageView’);
/*End Meta Pixel Code*/
}
}
// function gtmFunctionForLayout()
// {
//loadJS(“https://www.googletagmanager.com/gtag/js?id=G-K6ZDLWV6VX”, initJobSearch, document.body);
//}
// window.onload = (e => {
// setTimeout(
// function () {
// document.addEventListener(“DOMContentLoaded”, function () {
// // Select all anchor elements with class ‘ui-tabs-anchor’
// const anchors = document.querySelectorAll(‘a .ui-tabs-anchor’);
// // Loop through each anchor and remove the role attribute if it is set to “presentation”
// anchors.forEach(anchor => {
// if (anchor.getAttribute(‘role’) === ‘presentation’) {
// anchor.removeAttribute(‘role’);
// }
// });
// });
// }
// , 200);
//});
