LONDON: British oilfield services provider Petrofac has agreed to sell its 20 percent interest in the Greater Stella Area of the North Sea to oil and gas operator Ithaca Energy in a deal worth up to $292 million.
Petrofac, which designs, builds, operates and maintains oil and gas facilities, expanded into oil and gas production during the oil price boom earlier this decade.
But the strategy didn’t last and Petrofac has since been scaling back oil and gas production.
It announced the sale of its oil fields in Mexico last month after a warning last year that its integrated energy services (IES) division would have lower than expected profits.
“This disposal marks a further milestone in our journey back to a capital-light business ... (divestiture) marks the significant progress we are making on our stated strategy,” CEO Ayman Asfari said in a statement.
The proceeds from the sale of the North Sea assets, which also include a 24.8 percent interest in the FPF1 floating production facility, will be used to cut debt.
Petrofac expects to take a post-tax impairment charge of roughly $55 million from the sale.
Ithaca will pay roughly $145 million on completion of the deal, $120 million in non-contingent deferred consideration between 2020-2023 and a further $28 million of contingent consideration is payable depending on field performance, Petrofac said.
Reuters reported in May that Ithaca, owned by Israel-based Delek Group, would consider making an offer for the Petrofac holdings given its existing interest in the Greater Stella Area.
Petrofac sells North Sea assets for $292m
Petrofac sells North Sea assets for $292m
- Petrofac has about 12,500 employees
- Scales back on oil and gas production
Qatar lists first green sukuk as Al Rayan raises $137m
RIYADH: Qatar Stock Exchange listed its first green sukuk after Al Rayan Bank raised 500 million Qatari riyals ($137 million), expanding the range of sustainable Islamic finance instruments in the market.
The three-year sukuk carries an annual profit rate of 4.25 percent and is listed on QSE’s debt market, according to Qatar News Agency. The issuance is the first green sukuk in Qatar’s financial market and the first by an entity registered with the Qatar Financial Centre to be locally listed, cleared and settled.
The listing reflects efforts to deepen Qatar’s debt market and broaden access to Shariah-compliant instruments aligned with environmental, social and governance standards as investor demand for sustainable assets grows globally.
Abdullah Mohammed Al-Ansari, CEO of QSE, said: “The listing of the first green sukuk in QSE’s history represents a significant milestone in the development of Qatar’s capital market. It reflects our commitment to expanding the range of sustainable, Shariah-compliant financing instruments and enhancing the depth and diversity of the debt market in line with global best practices.”
He added: “This achievement also underscores QSE’s role as an integrated platform capable of supporting innovative financing solutions that align with national development priorities and long-term sustainability goals.”
Al Rayan Bank CEO Fahad Abdullah Al-Khalifa said the issuance underscores the lender’s ambition to lead in ESG-linked Islamic finance while strengthening the domestic capital markets infrastructure.
“By offering the first green sukuk to be listed, cleared, and settled in Qatar, we are not only reinforcing our role as a forward-looking institution but also contributing to the development of the local capital markets infrastructure,” he added.
Al Rayan Bank said the issuance reflects its ambition to play a leading role in advancing Qatar’s sustainable finance ecosystem by aligning Islamic banking principles with financing structures designed to deliver long-term value.
The listing comes amid continued development of QSE’s debt market, which has recently introduced inaugural corporate bonds, Islamic sukuk and sustainable bonds.
The green sukuk provides investors with a tradable Shariah-compliant asset that combines financial returns with environmental objectives, supporting portfolio diversification while reinforcing sustainability standards in the local market.
