Petrofac Ltd, in default and under administration since last year, said Tuesday it had signed an agreement to divest its business in the United Arab Emirates to an investor consortium led by Mason Capital Management LLC and Pearlstone Alternative (UK) LLP.
“Petrofac Emirates encompasses Petrofac’s core engineering and construction (E&C) capability, including the E&C execution teams in the UAE, Chennai and Mumbai”, the British energy engineering company said in an online statement.
“The transaction will position Petrofac Emirates as a strong, self-sustaining company with no funded debt on its balance sheet and substantial growth opportunities”.
The deal “preserves Petrofac’s execution and engineering capability and delivers continuity for the contracts currently under execution”, said Petrofac chief executive Tareq Kawash.
“With Petrofac Emirates’ strong presence and experience in the UAE, it is well positioned for future success in our home market as well as in the wider MENA [Middle East and North Africa] region”, Kawash added.
Petrofac said, “Completion of the transaction is subject to certain conditions, including customary governance, regulatory and stakeholder approvals which will be obtained as promptly as possible”.
Under an earlier agreement, Petrofac is working to complete the sale of its Asset Solutions business to CB&I, a maker of storage facilities, tanks and terminals based in The Woodlands, Texas.
The sale would save jobs for around 3,000 Petrofac workers, according to the agreement the companies announced December 24, 2025.
Last week a Scottish court upheld a “company voluntary arrangement” (CVA) between Petrofac and creditors, which would allow Petrofac to complete the sale to CB&I.
HM Revenue and Customs (HMRC) sought to block the CVA to enforce the government’s claim for historical National Insurance Contributions (NICs) for offshore workers from October 1999 to April 2014, according to an online statement by Petrofac March 2, 2026. Petrofac disputed the HMRC claim.
“Petrofac has today asked HMRC to confirm that they will not further challenge the CVA, as ongoing appeals may further delay completion of the transaction”, Petrofac said March 12, 2026.
“Petrofac is also seeking the support of both the UK and Scottish government to facilitate the swift completion of the sale to CB&I, for the benefit of all stakeholders”.
On October 23, 2025 Petrofac announced the end of its “advanced-stage” restructuring after European grid operator TenneT terminated Petrofac’s scope under a contract signed 2023 for 12-gigawatt connection projects on the Dutch and German sides of the North Sea.
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”.
On October 28, 2025 Petrofac stopped trading on the London Stock Exchange after entering into administration.
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