OMNI Features｜North Sea oil and Gas Firm Petrofac Files for Administration

Energy services group Petrofac has filed for administration, a move affecting its holding company but not its core North Sea operations. The company, employing about 2,000 people in Scotland and 7,600 globally, said its regional business would continue to operate normally as administrators work to preserve value and stability.

The decision follows the collapse of a financial restructuring plan after Dutch grid operator TenneT terminated a major offshore wind contract. Once valued at £6 billion and part of the FTSE 100, Petrofac's market worth had fallen to just £20 million by May, hampered by delayed payments, mounting costs, and lingering fallout from a Serious Fraud Office bribery investigation.

Founded in 1981, Petrofac has been a key engineering and project management partner for oil majors such as BP and Shell, designing facilities for oil, gas, and renewable projects. Despite this legacy, legal challenges and debt burdens have plagued the company's recovery efforts, with unresolved court cases still pending before the UK Supreme Court.

The announcement has drawn concern from Scottish and UK officials and business leaders, who warn of risks to the North Sea supply chain. It also reignited debate over UK energy taxation and government support for the sector, with calls to restore confidence and stability amid ongoing energy transition pressures.

Petrofac's parent company now faces the end of a turbulent four-year recovery attempt, but its operating arms remain active. Analysts say the firm could be reorganized under new ownership or corporate structure, with hopes of retaining its skilled workforce and significant contract pipeline across the energy transition landscape.