CB&I announced the signing of an acquisition agreement for Petrofac’s Asset Solutions unit, specialised in operations, maintenance and decommissioning services for onshore and offshore energy infrastructure. This transaction aims to integrate a reimbursable contracting model with low cyclicality, enabling CB&I to stabilise its cash flow while expanding its presence in new international markets.
The acquisition will allow CB&I to strengthen its portfolio beyond its traditional lump-sum engineering, procurement and construction (EPC) activities. According to CB&I President and Chief Executive Officer Mark Butts, both entities share a similar management culture and safety standards, facilitating the integration and implementation of this strategic move.
A more resilient revenue model
The reimbursable contract model, which is the main revenue lever of Asset Solutions, brings revenue diversification to CB&I by reducing market risk exposure associated with fixed-price contracts. The acquired unit is expected to deliver more predictable cash generation. The deal also includes a key geographic integration, with a strengthened strategic presence in the United Kingdom via facilities based in Aberdeen.
Petrofac, for its part, is refocusing on its core competencies. John Pearson, Chief Operating Officer of Asset Solutions, stated that this transition would stabilise client relationships, optimise supply chains and maximise operational excellence on current projects. Business continuity will be ensured through the preservation of execution responsibilities specific to each entity.
A structured reorganisation around two entities
Upon closing of the transaction, CB&I will operate under two distinct entities: CB&I Asset Solutions in Aberdeen and CB&I Storage Solutions in The Woodlands, United States. Each division will retain operational autonomy while relying on the group’s central functions for strategic initiatives and support services.
Approximately 3,000 Petrofac employees are expected to join CB&I upon finalisation, which is scheduled for the first quarter of 2026, subject to approval by certain secured and unsecured creditors. James Bennett, Senior Managing Director at Teneo and Joint Administrator of Petrofac Limited, welcomed the deal as a positive outcome ensuring operational continuity and the security of numerous skilled jobs.
A decisive step for CB&I in consolidating its portfolio
This acquisition marks a major milestone in CB&I’s long-term development strategy, relying on service complementarity and stable cash flows. The strengthened international position resulting from this integration also opens new growth prospects for the combined entities within the global energy sector.
