Petrofac administration plan puts North Sea jobs at risk

Petrofac, one of the biggest North Sea oil and gas contractors, has filed for administration, putting more than 2,000 jobs in Scotland at risk.

- Lauren Almeida

The energy services provider said it had applied to the high court of England and Wales to appoint administrators, after it lost a major offshore wind project over its failure to meet contractual obligations.

Petrofac, which employs about 7,300 people globally, said the administration plans - likely to be carried out by the business services firm Teneo - applied only to its ultimate holding company and that it would continue to trade during the process.

Nevertheless, any uncertainty over the company's continued viability could add to political pressure on the UK government as it faces a backlash over plans to tackle the climate crisis by blocking new North Sea oil licences for exploration.

The Department for Energy Security and Net Zero (DESNZ) said yesterday that it was leading efforts across "all parts of government" to support Petrofac's UK arm, which employs about 2,000 people at its North Sea hub in Aberdeen.