KEYFACT Energy
Transaction to diversify and grow business through integrated solutions, earnings growth, and geographic expansion
CB&I today announced that it has entered into a sale agreement to acquire Petrofac's Asset Solutions business, a leading provider of operations, maintenance and decommissioning services for onshore and offshore energy assets. The acquisition strengthens CB&I's portfolio with a complementary reimbursable contracting model business, delivering predictable cash flow and enhancing service capabilities. It also supports CB&I's diversification into integrated services, expands customer relationships, and opens pathways for growth in international markets.
"Asset Solutions' leadership demonstrates pride in operational excellence, commitment to customers, and resilience through challenging circumstances," said Mark Butts, CB&I President and Chief Executive Officer. "Our organizations share similar management philosophies and industry-leading safety performance. With this combination we see strong cultural alignment, diversification benefits, and clear opportunities to enhance performance and deliver stable cash flow generation. These factors collectively support CB&I's long-term growth objectives."
The acquisition will diversify CB&I's revenue streams through a reimbursable contracting model, which reduces cyclicality and broadens CB&I's service offering beyond its traditional lump-sum EPC portfolio.
"We are excited about this opportunity to focus on our core strengths, reaffirm critical customer relationships, stabilize our supply base and deliver operational excellence for our current and future projects," said John Pearson, Petrofac Asset Solutions Chief Operating Officer. "We have the operational and engineering talent required to deliver high-value growth opportunities and expand differentiated services. Our cultural compatibility with CB&I enhances our integration and supports a smooth transition."
Following the close of the transaction, CB&I will operate as one company with two global business units, CB&I Asset Solutions based in Aberdeen, Scotland, and CB&I's existing operations, CB&I Storage Solutions, based in The Woodlands, Texas. Each business will maintain its own delivery accountability within CB&I, enabling focused execution and performance tracking while leveraging CB&I's corporate functions for strategic alignment, business support and special initiatives.
James Bennett, Senior Managing Director at Teneo and Joint Administrator of Petrofac Limited, said:
"Following a swift and rigorous process to find the best home for Petrofac's Asset Solutions business, this is a very positive outcome and secures the future of its operations and the roles of many highly skilled people. Asset Solutions has an exciting future as part of CB&I, with strong operational compatibility and a complementary geographic footprint."
Completion of the transaction is subject to certain conditions including approval from certain secured and unsecured creditors of the Assets Solutions business which is currently expected to be obtained by the end of January 2026.
Approximately 3,000 Petrofac employees are expected to join CB&I at the close of the transaction, anticipated to occur in the first quarter of 2026.