US-based CB&I has moved to acquire Petrofac's Asset Solutions business, a deal that could see the ownership of the contractor overseeing phase one of the Northern Endeavour's decommissioning program transition into new ownership, with the Perth-based team currently delivering work on the Commonwealth-led project.  

CB&I said it had entered a sale agreement to acquire Asset Solutions, describing the business as a provider of operations, maintenance and decommissioning services for onshore and offshore energy assets. 

The company's president and CEO, Mark Butts, said the two groups had "similar management philosophies and industry-leading safety performance", framing the acquisition as an expansion into integrated services and a more predictable reimbursable contracting model.

"With this combination, we see strong cultural alignment, diversification benefits, and clear opportunities to enhance performance and deliver stable cash flow generation," he said. 

Petrofac separately confirmed it had agreed to sell Asset Solutions to CB&I, with Petrofac group chief executive Tareq Kawash calling it "a great outcome" that would "support job security for 3,000 talented team members."  

Petrofac said the sale consideration was agreed on a debt-free, cash-free basis, and administrators expected net proceeds in the range of US$45 million to US$55 million, depending on deductions confirmed closer to completion.  

Completion remains subject to conditions, including approvals from certain secured and unsecured creditors, with Petrofac indicating those approvals were expected by the end of January 2026, ahead of a targeted close in Q1 2026.  

Petrofac's issues

In October cash-strapped Petrofac filed for administration after a restructuring plan aimed at securing new funding and tackling debt levels collapsed.

In November, the UK-based company said it was considering mergers and acquisitions (M&A) options for its main operating divisions, and in December US-based CB&I made its announcement that it would acquire the Petrofac's Asset Solutions business.

When Petrofac entered administration a spokesperson for the government Department of Industry, Science and Resources - which is in charge of the FPSO's decommissioning program - told ENB: "The Government is aware that the Petrofac group's parent company, Petrofac Ltd, has entered administration. The vast majority of the Northern Endeavour phase 1 decommissioning works have already been completed following the disconnection and removal of the FPSO. The department will continue to work with Petrofac Facilities Management Limited to ensure that all remaining phase 1 works are completed."

Petrofac said a meeting of Petrofac Facilities Management Limited's creditors would be held on 30 January 2026 to vote on a proposed Company Voluntary Arrangement (CVA) linked to the sale. Petrofac said the CVA was intended to compromise certain creditor claims to enable completion, while "trade creditors, employees and certain other parties are not affected", and operations would continue as usual during the process.  

John Pearson, CEO of Petrofac's Asset Solutions business, said the CVA was "the final step" and that the company was asking creditors to support it so the sale could be completed. Teneo's James Bennett, acting as a joint administrator of Petrofac Limited, described the transaction as "a very positive outcome" that would "secure the future" of Asset Solutions' operations and roles.

Northern Endeavour - the latest

The former FPSO is currently sitting in a shipyard in Singapore where it is being readied for its final voyage to MARS's decommissioning yard in Denmark. In the next few weeks it will be loaded on to the back of COCSO's Hua Rui Long.

Last month the the liquidators of the former owner of the Northern Endeavour were given more time to fight the government over the $1.1 billion they claim they are owned. claims is owed to him.

Liquidators for Timor Sea Oil and Gas Australia (TSOGA), a subsidiary of Northern Oil and Gas Australia – the Angus Karoll-owned operation which bought the Northern Endeavour from Woodside in 2015 - believe the federal government owes them money for agreeing to hand over 30% of NOGA's tenements to Timor-Leste and for effectively shutting down the business. This move they and Karoll believe was unfounded.

In a Sydney courtroom last month, after hearing there are "multiple funders" wiling to support the bid, Justice Stellios granted a request from the liquidators for more time to prepare their case and sort the required funding. The matter returns to court in April.

Source: Energy News Bulletin