North Sea oil services group Petrofac could ‘collapse by Monday’
Petroface, a North Sea oil and energy services group, could file for insolvency as early as Monday morning before markets open, it has been reported.
The company’s board is reportedly holding emergency meetings over the weekend to discuss the possible collapse of the firm, putting around 2,000 jobs in Scotland under risk.
It has also approached insolvency consultants at Teneo to handle its administration while the Department for Energy Security and Net Zero has approached advisers at Kroll to deal with the crisis, according to Sky News.
An industry official told the broadcaster that a decision to file for administration could be made on Monday morning.
The Telegraph has reported that Ed Miliband had put officials on high alert for the possible collapse of the North Sea operator that is used by offshore energy companies including Shell, BP and TotalEnergies.
Petrofac employs thousands more people across the world and oversees safety obligations at some sites in the North Sea.
The London Stock Exchange-listed firm has seen its share price slide by more than two thirds over the past year amid wider business struggles involving a corruption scandal in the Middle East and disruption at an oil refinery in Thailand.
North Sea jobs pressures
The collapse of the company would represent yet another blow for government efforts to lower energy bills and protect jobs across British industry.
Labour ministers have come under intense pressure over its position to block new North Sea oil licences and rushing to remove fossil fuels from electricity power across the country.
Business leaders have called on the government to remove windfall taxes on oil giants, with reports suggesting plans are under consideration for the Budget.
Tony Blair’s think tank also called on the government to ditch its 2030 clean power target and focus on making energy bills in order to ease the transition to net zero by 2050.
Keir Starmer is also facing calls from the Trump administration in the US to expand oil projects in the North Sea.
Scottish MPs have also said that more jobs in renewable energy were not making up for losses across the energy sector.