US-based energy services company Petrofac has initiated administration proceedings for its holding company, as reported by the BBC.

With approximately 2,000 employees in Scotland, the company assured that its North Sea operations would remain unaffected.

In its statement, Petrofac confirmed the application for administrators while also considering other restructuring possibilities.

The appointed administrators aim to maintain value, operational capability, and ongoing service delivery.

This action follows the termination of a significant offshore wind contract with Dutch grid operator TenneT, which disrupted Petrofac’s planned financial restructuring.

Petrofac said: “This is a targeted administration of the Group’s ultimate holding company only.

“The group’s operations will continue to trade, and options for alternative Restructuring and M&A solutions are being actively explored with its key creditors, including the ad hoc group of noteholders, who are supporting the group with continued forbearance arrangements whilst alternative options are explored.

“The group also retains the support of its RCF and term loan lenders who continue to extend maturities on a rolling basis.

“When appointed, administrators will work alongside executive management to preserve value, operational capability and ongoing delivery across the group’s operating and trading entities.”

Established in Texas in 1981, Petrofac specialises in designing and constructing facilities for oil, gas, and renewable energy projects.

The company, which has worked with major firms such as BP and Shell on North Sea oil platforms, offers engineering, project management, and logistics services.

Petrofac’s financial position has deteriorated, worsened by a Serious Fraud Office investigation and multiple profit warnings.

Its value, which was worth £6bn (approximately $9bn) in 2012, dropped to approximately £20m ($26.7m) before trading of its shares was suspended in May 2025, due to delayed contract payments and a rise in operational costs.

The Aberdeen and Grampian Chamber of Commerce (AGCC) expressed concern over the announcement, highlighting the challenges in the North Sea supply chain.

A spokesperson from the UK Department of Energy Security and Net Zero stated that Petrofac’s UK operations continue to function normally, noting the company’s skilled workforce and successful contracts.

The administration is attributed to persistent issues in Petrofac’s global operations. The government intends to support the UK entity as it navigates its future.

AGCC chief executive Russell Borthwick said: “Thousands of skilled jobs across the region depend on companies like Petrofac, which sit at the heart of both our oil and gas and energy transition sectors.

“While many of Petrofac’s challenges predate the current government, this is another stark reminder that the UK Government must urgently act to restore confidence and stability in the energy industry.”

Last month, Petrofac strengthened its partnership with Ithaca Energy in the UK North Sea with a two-year contract renewal valued at $50m.

More information:https://www.offshore-technology.com/news/petrofac-files-for-administration/?cf-view