UK oil field contractor Petrofac has sold its 50% stake in Petro-SPM Integrated Services, which operates the Pánuco  contract in Mexico, to Schlumberger.

The financial terms of the transaction were not divulged by the parties.

With the acquisition, Schlumberger will now have complete control over the contract with 100% interest.

Prior to the deal, the companies jointly held equal interests in the contract.

Petrofac integrated energy services chief operating officer Rob Jewkes said: "We are pleased to conclude this transaction, which is in line with our strategy and simplifies the ownership of the Pánuco field.

“We will continue to focus on the remaining production service contracts in our Mexican portfolio."

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"This transaction aligns with our well-established portfolio of production management projects and enables us to move forward with our plans to continue to develop the Pánuco field."

Petrofac noted that the transaction is consistent with the net book value of its interest and involves cash on completion and deferred consideration.

Accordingly, the deferred consideration includes a payment on migration from an integrated service contract to a new contract form.

Furthermore, Schlumberger needs to offer a further share of post-migration cash flows.             

Schlumberger new ventures executive vice-president Patrick Schorn said: “We consider Mexico’s Energy Reform as a significant step in the evolution of the country’s oil and gas industry, and we are optimistic in regard to the various business opportunities created under the new reforms.

“This transaction aligns with our well-established portfolio of production management projects and enables us to move forward with our plans to continue to develop the Pánuco field.”