#USA #The Woodlands #Petrofac #CBI #Asset Solutions

CB&I Expands Portfolio with Strategic Acquisition of Petrofac's Asset Solutions Business

On December 24, 2025, CB&I announced a significant transaction that is poised to reshape its operational framework. The leading designer and builder of storage facilities has entered into an agreement to acquire Petrofac's Asset Solutions business, which is renowned globally for its operations, maintenance, and decommissioning services across both onshore and offshore energy assets. This acquisition supports CB&I’s ambition to diversify its service offerings and improve its market presence, particularly in international markets.

The Rationale Behind the Acquisition

CB&I's President and CEO, Mark Butts, emphasized the alignment in operational philosophies and safety performance between the two organizations. He highlighted the advantages of integrating Petrofac’s Asset Solutions into CB&I's framework, noting that it not only strengthens CB&I’s portfolio but also creates a stable revenue stream through a complementary reimbursable contracting model. This model is expected to mitigate the cyclicality faced by CB&I and expand its capabilities beyond traditional lump-sum EPC (Engineering, Procurement, and Construction) projects.

Furthermore, this move is illustrative of CB&I's drive towards enhanced operational excellence and customer relationship management. Butts expressed optimism that the merger would yield a productive environment for both firms, fostering a shared culture focused on delivering high standards of service.

Expected Benefits and Future Outlook

With the potential addition of around 3,000 Petrofac employees to its ranks after the transaction closes, projected for the first quarter of 2026, CB&I is gearing up for extensive growth and development. John Pearson, Chief Operating Officer of Petrofac Asset Solutions, emphasized the potential for increased performance and stability that this acquisition could facilitate. He believes that combining Petrofac’s robust operational talent with CB&I's resources could unlock unparalleled growth opportunities and an expanded suite of services.

Moreover, the newly formed entity will operate through two global business units. CB&I Asset Solutions will be based in Aberdeen, Scotland, while its Storage Solutions operations will remain centered in The Woodlands, Texas. This structure is set to allow each unit to maintain its distinct operational responsibilities while benefiting from CB&I’s corporate support systems.

Enhancing Global Footprint

The acquisition positions CB&I favorably within the global energy service landscape, broadening its reach and access to potential clients in diverse markets. According to James Bennett, Senior Managing Director at Teneo, the acquisition secures the future of Petrofac's operations and the employment of its skilled workforce. It is anticipated that the integration of these operational capabilities will foster a synergistic environment that benefits both companies.

As the transaction nears completion, pending approval from both secured and unsecured creditors, CB&I prepares to solidify its commitment to operational excellence while exploring new strategic pathways that enhance its overall service delivery.

Conclusion

In conclusion, CB&I's acquisition of Petrofac's Asset Solutions business marks a pivotal moment in its strategy to enhance growth and service capabilities. This strategic move underscores CB&I's commitment to diversifying its offerings in the competitive landscape of energy services. As the company embarks on this journey of integration and growth, it remains focused on operational excellence, customer relationships, and expanding its footprint in global markets.