CB&I Acquires Petrofac’s Asset Solutions Business to Broaden Energy Services

CB&I has made a strategic agreement to take over the Asset Solutions business of Petrofac. The Asset Solutions unit of Petrofac is engaged in the provision of services related to operations, maintenance, and decommissioning of both onshore and offshore energy assets. This move is expected to improve the service portfolio of CB&I and also give it a wider range of capabilities in the field of energy infrastructure.
The merger of the two companies’ service portfolios is indeed a very nice match. Historically, CB&I has been a leader in the design and construction of storage facilities, tanks, and terminals, whereas Petrofac’s Asset Solutions has developed a contracting service which is expected to generate cash flows that are more stable and predictable. This collaboration will be a way for CB&I to broaden its revenue sources in the area of large-scale engineering, procurement, and construction contracts which are usually associated with lump-sum pricing.

In the eyes of CB&I’s management, the cultures and operational philosophies of these two businesses can be said to be very similar. They have both companies have put a lot of focus on safety and operational excellence and the executives consider these factors as being the main reasons for a smooth transition. CB&I is planning to strengthen the service delivery and customer relations, both with the current and the new customer base, by the merger of these two capabilities, and reach out to the customers globally.

The deal is subject to regulatory and creditor approvals and is therefore, expected to close by the end of the first quarter of 2026. After the deal is done, CB&I will have two global units: the CB&I Asset Solutions unit in Aberdeen, Scotland and the CB&I Storage Solutions unit in The Woodlands, Texas. The responsibility for delivery at the unit level will remain, but the units will have access to corporate resources and will therefore, have an advantage over the competition.

The transfer will see around 3,000 employees in Petrofac’s Asset Solutions department moving to CB&I. The two companies have promised not only to help the present customers but also to make the integration seamless with no service interruption.
For Petrofac, the sale is a great opportunity to concentrate on its restructuring efforts and at the same time slow down the decline of its operations because of the financial crisis. The Asset Solutions business has built a reputation for its operational and engineering services and the management believes that the integration of Asset Solutions with CB&I will result in long-term operational success.

The acquisition is seen by industry insiders as an indicator of the shift in the energy sector towards service diversification. As firms increasingly try to combine traditional engineering activities with ongoing service and maintenance contracts, this will, in effect, result in a more stable revenue stream over time. This acquisition gives CB&I an opportunity to ride that trend while also ensuring that Petrofac’s clients are not affected.

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