Petrofac Limited (LON:PFC) has agreed the acquisition of US-based shale specialist W&W Energy Services top off a period where it won contracts worth US$120mln.
The oilfield services company was awarded a first project in Malaysia and won contracts extensions in the North Sea as well as a new three-year project in the region.
READ: Petrofac describes “solid operational performance” in first half
The FTSE 250-listed outfit will spend an initial US$22mln to acquire its American peer, based in the shale Permian basin, to enter the US onshore operation and maintenance market.
Petrofac will also pay deferred instalments based on W&W’s financial performance over the three years to December 2021.
In the financial year to 31 December, W&W had underlying earnings of US$6.6mln, while at the completion of the agreement its net debt was US$2.8mln.
“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,” said chief executive John Pearson.
Petrofac's shares were down 1% to 391.1p in early trading.