A major North Sea oil and energy giant has filed for administrators in a move placing thousands of jobs at risk amid ongoing scrutiny over windfall taxes imposed on the sector.
Petrfoac has confirmed it made the decision after one of TenneT, one of its customers, cancelled its working relationship with the firm over a 2GW energy programme in the Netherlands.
In a statement, a spokesperson for Petrfoac shared: “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.
“When appointed, administrators will work alongside executive management to preserve value, operational capability and ongoing delivery across the group’s operating and trading entities.”
A major North Sea oil giant has fallen into administration with 1,000s of jobs at risk
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Notably, the company cited that its operations will continue to trade, and new avenues for alternative restructuring and M&A solutions were being “actively explored” by administrators.
Over the past year, the company’s share price on the London Stock Exchange slipped by more than two-thirds amid ongoing business struggles.
The firm has been forced to contend with a corruption scandal in its Middle East operations and previous disruption at an oil refinery in Thailand.
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