Petrofac’s year off to a ‘great’ start with $500M worth of contracts in the bag

The Asset Solutions division of the UK-headquartered oilfield services provider Petrofac has won multiple scope expansion and new contracts across several continents.

Awarded in the first quarter of 2025, the contracts total $500 million, the UK player said in a statement. The awards span late-life asset management, decommissioning, and integrated services.

The contracts are expected to realize growth in the Asset Solutions’ core markets and target growth geographies, including the UK, Europe, the Middle East, Africa, Asia Pacific, and the U.S.  

Petrofac’s Chief Operating Officer, John Pearson, noted: “Following a strong year for awards in 2024, our Asset Solutions business has had a great start to 2025 with half a billion dollars’ worth of scopes and contract expansions secured already, and a strong pipeline of opportunities across a range of geographies during the remainder of the year.

“These awards, with a range of clients, demonstrate the strength in our mature asset management and decommissioning offering, and form part of our strategy to expand our services into selected new geographies. We look forward to continuing this trajectory throughout the remainder of 2025 and beyond.”

This follows the engineering, procurement, and construction (EPC) contract Petrofac’s Emirates subsidiary secured with ADNOC Gas in January 2025. The $335 million contract encompasses new compression facilities for the Habshan Complex.

In addition to securing new contracts, the UK firm is expected to undergo a comprehensive financial restructuring to strengthen the group’s financial position. The court hearing for the restructuring process was held on February 28, 2025, when the convening hearing was adjourned to March 20 or 21, 2025.

Last month, Petrofac confirmed that the convening hearing was held on March 20, 2025. As disclosed, the court approved the creditor class composition proposed in the restructuring plan and ordered the convening of creditor meetings. 

The sanction hearing for the process is scheduled to take place between April 30 and May 2, 2025, with the restructuring effective date expected to follow shortly after that. Additionally, on March 12, 2025, the company opened the subscription period during which secured creditors can choose to participate in the new money options available to them under the terms of the restructuring.