Petrofac Abu Dhabi sale: What the deal means for UAE projects, jobs, growth

Dubai: Petrofac’s agreement to sell its Abu Dhabi-based engineering and construction business, Petrofac Emirates, comes as part of a wider restructuring, with the group continuing to keep its existing contracts.

The deal, announced on Tuesday, centres on Petrofac Emirates, which the company said “encompasses Petrofac's core Engineering & Construction (E&C) capability, including the E&C execution teams in the UAE, Chennai and Mumbai.”

The sale to a group of investors led by New York-based Mason Capital Management and London-based Pearlstone Alternative remains subject to “customary governance, regulatory and stakeholder approvals,” Petrofac said.

Chief Executive Tareq Kawash said the deal “preserves Petrofac’s execution and engineering capability and delivers continuity for the contracts currently under execution.”

James Bennett, joint administrator of Petrofac Limited, said the process “supports a smooth transition for customers, suppliers and employees.” Company statements point to continuity of operations across ongoing UAE projects, though no details were given on employment outcomes.

Petrofac said the transaction will establish Petrofac Emirates as “a strong, self-sustaining company with no funded debt on its balance sheet and substantial growth opportunities.” Kawash added the business is “well positioned for future success in our home market as well as in the wider MENA region.”

Petrofac’s UAE presence spans two centres: Petrofac Emirates in Abu Dhabi, described as its core E&C capability, and Petrofac International Limited (PIL) in Sharjah. The company said in late 2025 it had sought to place the Sharjah-based PIL into administration as part of the restructuring.

The group continues to hold projects in the UAE linked to Abu Dhabi National Oil Company and its subsidiaries, including Adnoc Gas’s Rich Gas Development project, the Ruwais LNG scheme, and Adnoc’s Habshan carbon capture, utilisation and storage (CCUS) project and Habshan Complex.

Petrofac is also pursuing additional work in the country, including a planned multibillion-dollar gas plant project for Adnoc Gas.

New owners Mason Capital signalled expansion plans, with partner Sam Read stating the consortium aims to “capitalise on new market opportunities” and “leverage significant growth potential” in the EPC sector.

The UAE-focused sale follows developments tied to Petrofac’s Company Voluntary Arrangement (CVA), linked to the divestment of its Asset Solutions business.

Petrofac said last week a UK court rejected a challenge by HM Revenue and Customs to the CVA, which is “a required condition for the sale of the Asset Solutions business to CB&I.” The company said it intends to complete that sale “in the shortest possible timeframe.”

The CVA was approved on January 30, with “99% of creditors voting and 86% by value of claims” in favour. Petrofac said the CB&I transaction would secure “a positive future for the business and its 3,000 employees.”

The March 17 agreement follows months of creditor negotiations and legal challenges. Petrofac said the Petrofac Emirates deal “gives the business a clear route forward under new ownership,” following “many months’ work.”