Petrofac demerges subsidiary

4th Mar 2010 07:09

Petrofac is proposing to hive off its UK Continental Shelf assets into a new company to be formed with Swedish oil and company Lundin Petroleum.The UK oil and gas facilities service provider will demerge its Petrofac Energy Developments subsidiary and combine it with the UK Continental Shelf oil & gas assets of Lundin to create a company called EnQuest.Shares in the new company will be listed on the London Stock Exchange as well as the NASDAQ OMS Stockholm bourse. Amjad Bseisu will give up his role as chief executive of Petrofac’s Energy Developments business unit and as a director of Petrofac and will become chief executive officer of EnQuest.The group chief executive of Petrofac, Ayman Asfari , will oversee the Energy Developments and Production Solutions business units on a temporary basis until a permanent appointment is made.The demerger will be effected by a reorganisation of Petrofac’s share capital. Following the demerger Petrofac shareholders will own around 45% of the issued ordinary share capital of EnQuest at the time of the demerger.‘This demerger provides shareholders with an opportunity to retain an investment in a separately listed entity and the ability to participate in its future growth prospects. This is the first time we have harvested value from our Energy Developments business, and we will continue to seek value creating opportunities in oil & gas upstream developments and energy infrastructure,’ said Asfari.