Petrofac today announces that its Board has filed an application to place the Company into administration, effective immediately, and has appointed Teneo (UK) Limited as administrators.

Key Details of the Administration

• The Board has determined that the Company is unable to meet its financial obligations as they fall due and that continuation of the business in its current form would be likely to risk further creditor losses.
• Teneo (UK) Limited has been instructed to act as Administrator with a mandate to stabilise the business, review options for restructuring, disposal or winding-down of assets, and engage with creditors, clients, employees and other stakeholders.
• The Company continues to deliver services to clients on a “business-as-usual” basis wherever practically possible, including its North Sea operations. However, until further notice, contractual counterparties and suppliers should liaise directly with the Administrators.
• Approximately 2,000 roles in the UK, particularly at the Company’s North Sea operations in Scotland, are immediately at risk as a result of this process.
• The Company’s shares remain suspended and existing equity holders are expected to receive no residual value in the likely event that restructuring or sale does not preserve the current capital structure.

Reasons for the Administration

• The decision follows the termination by TenneT TSO B.V. of a major offshore wind-farm contract, which the Board determined fatally undermined the Company’s restructuring plan.
• A prolonged process of financial restructuring, involving court-sanctioned plans, has repeatedly faced obstacles—leading to significant debt and inadequate liquidity.
• The Board’s assessment is that there is no reasonably practicable route to return the Company to solvency without administration.

What Happens Next

• The Administrators will immediately review the business and assets of the Company and deliver an initial report to creditors within the statutory period.
• Stakeholders, including clients, contract counterparties, suppliers, employees and lenders, will receive further communications from the Administrators outlining next steps and their implications.
• Employees in the UK and elsewhere will be supported via the formal consultation and redundancy processes, where applicable.
• The Company remains committed to maintaining safe operations and client delivery during the administration process.

Petrofac Chairman René Médori commented:
“This is a regrettable but necessary step given the Company’s untenable financial position. Our priority now is to ensure as orderly a transition as possible and to work in full cooperation with the Administrators to achieve the best possible outcome for all stakeholders.”

Petrofac Group Chief Executive Tareq Kawash said:
“Petrofac has delivered high-quality services to clients over many years and our teams continue to work through this transition. We thank our employees, clients and suppliers for their dedication during this very challenging period.”

KeyFacts Energy Industry Directory: Petrofac