Petrofac agrees to acquire W&W Energy Services

Oil and gas industry services provider Petrofac agreed to acquire W&W Energy Services on Wednesday, providing the group with an entry-level position in the US onshore operations and maintenance market.

Petrofac will acquire W&W, which offers maintenance, repair and overhaul and pipeline tie-in services in the Permian Basin, for an initial cash consideration of $22m - with deferred true-up and earn-out payments to be paid based on the company's financial performance between now and 2021.

The group said the bolt-on acquisition was in line with its stated strategy to position engineering and production services for growth by diversifying into new markets and geographies.

Chief operating officer John Pearson 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."

Elsewhere, Petrofac revealed its engineering and production services unit had secured its first small-scale EPC contract in Malaysia and a three-year EPCC framework agreement with a North Sea operator.

As of 0820 GMT, Petrofac shares were down 0.71% at 392.80p.