Thousands of jobs at risk as Petrofac appoints administrators
North Sea oil and energy services group Petrofac has appointed administrators, putting thousands of jobs at risk.
The company said it took the decision after one of its customers, TenneT, terminated its relationship over a 2GW energy programme in the Netherlands.
“Having carefully assessed its options, and the impact of TenneT’s decision… the directors of Petrofac Limited have applied to the High Court of England and Wales to appoint administrators,” the company said in a statement.
“When appointed, administrators will work alongside executive management to preserve value, operational capability and ongoing delivery across the group’s operating and trading entities.”
Petrofac added that its operations will continue to trade, and options for alternative restructuring and M&A solutions were being “actively explored”.
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 had 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.
The company’s shares were suspended in May amid ongoing financial difficulties.
North Sea jobs pressures
The collapse of the company would represent yet another blow to 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.