North Sea oil and gas giant Petrofac files for administration  

Petrofac, one of the North Sea’s biggest oil and gas contractors, has filed for administration.  

The move will put more than 2,000 jobs in Aberdeen at risk, as the company struggles to cope with the loss of a major offshore wind contract which derailed a planned financial restructuring.  

In a statement, published this morning, Petrofac said it had applied to appoint administrators for its ultimate holding company, Petrofac Limited. 

In the statement, Petrofac said that the group will “continue to trade” while options for alternative restructuring or mergers and acquisitions are explored. 

"This is incredibly concerning news for employees of Petrofac and their families,” said Aberdeen Central MSP Kevin Stewart.  

In Aberdeen, the firm is one of the region's main employers, providing operation, maintenance and training services for major clients including Shell and BP in the North Sea. 

The decline of oil revenues in the North Sea, fuelled by a move towards renewable energies and the maturation of existing oil fields, has already taken over 9,000 jobs out of the city.  

“The UK arm of Petrofac has not entered administration and is continuing to operate as normal, as an in-demand business with a highly skilled workforce and many successful contracts,” said a spokesperson from the Department for Energy Security and Net Zero (DESNZ). “Ministers are working across all parts of government led by DESNZ in support of this.”   

Petrofac, which was founded in Texas in 1981, reached a peak valuation of around £6bn in 2012 before facing a number of poor profit warnings and a Serious Fraud Office investigation that cost the company over £77m in penalties. 

Petrofac’s most recent market valuation sat at £20m, before its shares were suspended from the London Stock Exchange in May after failing to publish its 2024 results. The company has debts of around $600m.  

First Minister John Swinney said the news was “incredibly concerning” and called on the UK government to revisit the Energy Profits Levy. The Energy Profits Levy is a temporary extra tax on the windfall profits of North Sea oil and gas companies, which will last until 2030. It was introduced in May 2022 to help provide support for households facing high energy bills and will rise to 38 per cent in November. 

In its 2024 general election manifesto, the Labour government promised not to grant licences for new oil and gas fields in the North Sea. This has faced significant pushback from across the political spectrum.  

"Scotland's abundance of energy resources has long been the backbone of our economy, and the SNP is determined to see that continue,” said Stewart. "However, Labour's Energy Profits Levy and empty promises in relation to GB Energy are putting jobs at risk and keeping bills at record levels. I urge the Labour government at Westminster to urgently rethink its approach and stand ready to support all those affected by this news."