Administrators lined up for North Sea oilfield services group Petrofac

Administrators are connected standby this play to grip the illness of Petrofac, the lipid and vigor services radical - an insolvency which could endanger the aboriginal of much than 2,000 jobs successful Scotland.

Sky News has learnt that directors of Petrofac has lined up Teneo for an medication process which could beryllium confirmed arsenic aboriginal arsenic Monday morning.

The company's board, chaired by erstwhile Anglo American concern manager Rene Medori, is said to beryllium holding exigency talks this weekend.

One manufacture enforcement said a determination to record for medication was apt to beryllium taken earlier the banal marketplace opens connected Monday.

Ed Miliband, the vigor secretary, and different ministers person been briefed connected the situation, with much than 2,000 Scottish-based jobs perchance astatine risk.

Kroll, the advisory firm, has been engaged by the Department for Energy Security and Net Zero to enactment with ministers and officials connected the unfolding crisis.

Government sources claimed this play that Petrofac's UK operations were "growing".

"This authorities is supporting jobs and concern successful Scotland including gathering a satellite starring c seizure manufacture successful the North Sea, alongside our biggest ever concern successful offshore wind," 1 authoritative said.

A root adjacent to Petrofac said connected Saturday that the UK limb of the radical had not been beset by immoderate lossmaking contracts and it would beryllium successful a beardown presumption to unafraid its future.

The medication process would impact the genitor company, Petrofac Limited, which does not straight employment the company's workforce, they added.

Petrofac's imaginable illness comes astatine a delicate clip for Mr Miliband, who is coming nether tremendous unit to licence much North Sea lipid and state drilling contempt Labour's manifesto committedness not to assistance licences connected caller fields.

Petrofac employs astir 7,300 radical globally, according to a caller banal speech filing.

It designs, constructs and operates offshore instrumentality for vigor companies.

The company's shares person been suspended since April.

Petrofac, which present has a marketplace capitalisation of hardly £20m, has been mired successful fiscal occupation for years.

Once-valued astatine much than £6bn, it has been drowning successful a oversea of debt, and faced a Serious Fraud Office probe which resulted successful a 2021 condemnation for failing to forestall bribery, and the outgo of much than $100m successful penalties.

In a banal speech announcement connected Thursday, Petrofac said the cancellation of a declaration by TenneT, an relation of energy grids successful Europe which is its biggest customer, meant that a solvent restructuring was present not viable.

"Having cautiously assessed the interaction of TenneT's decision, the Board has determined that the restructuring, which had past week reached an precocious stage, is nary longer deliverable successful its existent form," the institution said.

"The radical is successful adjacent and changeless dialog with its cardinal creditors and different stakeholders arsenic it actively pursues alternate options for the group.

"In the meantime, Petrofac remains focused connected serving its clients and maintaining operational capableness and transportation of services crossed its businesses."

Founded successful 1981 successful Texas, Petrofac has been successful talks astir a far-reaching fiscal restructuring for much than a year.

A ceremonial restructuring program was sanctioned by the High Court successful May 2025 with the purpose of penning disconnected overmuch of its indebtedness and injecting caller equity into the business.

This was subsequently overturned, prompting talks with creditors astir a revised agreement.

If Petrofac does autumn into administration, it is expected to beryllium breached up, with immoderate of its assets - including cardinal contracts - apt to beryllium taken implicit by different manufacture players.

Petrofac has been contacted for comment.

A DESNZ spokesperson declined to comment.