Petrofac takes hit on sale of stake in North Sea project

PETROFAC has agreed to take a $55m (£43m) hit on the sale of its stake in a major North Sea project as it scales back its involvement in oil production and aims to cut debt.

The Jersey-based company, which is embroiled in a Serious Fraud Office investigation, will sell its 20pc stake in the Greater Stella Area development to its joint venture partner Ithaca Energy for just $292m.

Also included in the deal is Petrofac’s 24.8pc stake in the FPF1 rig at the project off the east coast of Scotland.

Israeli-owned Ithaca will pay $145m on completion of the deal, expected to be in the first quarter of next year, followed by a further $120m between 2020 and 2023, and an additional $28m depending on the field’s performance.

The project has proved to be a thorn in the side of the FTSE 250 oil contractor, which is being investigated by the SFO for allegedly paying an intermediary to secure oil services contracts by bribing local officials.

Petrofac denies any wrongdoing.