StockMarketWire.com - Oil services group Petrofac said it had agreed to sell a vessel-building project to Shanghai Zhenhua Heavy Industries for $190m.

Petrofac said it would also get a 10% interest in a new special purpose vehicle set up to own the vessel once it had been commissioned.

The upfront $190m payment, however, would be offset by $23m retained by Petrofac under a previous hull and marine contract with Shanghai Zhenhua Heavy Industries.

The remaining proceeds of the sale would be used to reduce debt. The project was referred to by the name JSD6000.

'This agreement materially completes our disposal of the project, in line with our stated intention to exit the deep-water market,' chief executive Ayman Asfari said.

'It is a further positive step in the execution of our stated strategy to focus on our core strengths, deliver organic growth and reduce capital intensity.'




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