UK Oilfield Services Firm Petrofac Files for Administration Amid Major Dutch Contract Loss

Petrofac, a major UK-based oilfield services company crucial to North Sea operations, has filed for administration after losing a significant contract with Dutch-German grid operator TenneT, which terminated its involvement in a large offshore wind project. Despite this financial setback, Petrofac's operations continue to trade as the company explores restructuring and potential sale options with creditors, including support from noteholders and lenders. The administration filing affects the group's ultimate holding company only, while its business units remain active, fulfilling major commitments. The move puts around 2,000 direct jobs, primarily in Scotland, at risk, with wider implications for the energy sector and local economy. The company's financial difficulties stem from challenges including rising costs, delayed payments, and a failed restructuring deal, exacerbated by issues in its Abu Dhabi operations. Petrofac's ongoing situation has prompted emergency talks among its board and creditors, highlighting the critical role it plays in operating offshore platforms for major energy firms like Shell, BP, and TotalEnergies.