{"id":227864,"date":"2025-10-27T08:48:07","date_gmt":"2025-10-27T08:48:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/227864\/"},"modified":"2025-10-27T08:48:07","modified_gmt":"2025-10-27T08:48:07","slug":"more-than-2000-jobs-at-risk-as-oil-and-gas-company-enters-administration-money-news","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/227864\/","title":{"rendered":"More than 2,000 jobs at risk as oil and gas company enters administration | Money News"},"content":{"rendered":"

More than 2,000 Scotland-based jobs are at risk as oil and energy services group Petrofac has applied for administration. <\/p>\n

The group’s operations will continue to trade, and options for restructuring of the company and a possible merger or acquisition are being actively explored with its key creditors, the company said on Monday.<\/p>\n

People close to the company say they are hopeful a buyer can be found swiftly for its North Sea operations, with one suggesting that it could even happen in the coming days.<\/p>\n

Money blog: ‘We protect the UK, our salaries can be limitless’<\/a><\/p>\n

Administrators will work alongside company management to “preserve value, operational capability and ongoing delivery”, its announcement read.<\/p>\n

News of a possible insolvency announcement was first reported by Sky News<\/a>.<\/p>\n

Energy Secretary Ed Miliband and other ministers have been briefed on the situation.<\/p>\n

\n Not a great start to the week for Ed Miliband, though relief could come\n <\/p>\n

It’s not the start to the week that Ed Miliband, the energy secretary, would have been hoping for: more than 2,000 private sector jobs in Scotland at risk from the collapse of Petrofac, the London-listed oilfield services group.<\/p>\n

Its slide into insolvency was triggered by last week’s cancellation of a major contract by its biggest customer, but the failure of a company once valued at more than \u00a36bn has been a long time coming.<\/p>\n

Administrators at Teneo will now attempt to salvage what they can from Petrofac’s wreckage.<\/p>\n

For thousands of employees, the future is now uncertain, although people close to the company say they are hopeful that a buyer can be found swiftly for its North Sea operations, with one suggesting that it could even happen in the coming days.\n<\/p>\n

That would be a relief to Mr Miliband, whose energy policy has come under growing scrutiny in recent months amid dire warnings about the future of Britain’s offshore oil industry.<\/p>\n

An advisory firm, Kroll, had been engaged by the Department for Energy Security and Net Zero to work with ministers and officials on the unfolding crisis for the company.<\/p>\n

What is Petrofac?<\/p>\n

Petrofac employs about 7,300 people globally, according to a recent stock exchange filing.<\/p>\n

It designs, constructs and operates offshore equipment for energy companies.<\/p>\n

The company has been valued at more than \u00a36bn but has been struggling with debt.<\/p>\n

It also faced a Serious Fraud Office investigation, which resulted in a 2021 conviction for failing to prevent bribery, and the payment of millions of pounds in penalties.<\/p>\n

Please use Chrome browser for a more accessible video player<\/p>\n

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0:27<\/p>\n

Ed Miliband ‘welcomes’ challenge from Jeremy Clarkson for seat in parliament<\/p>\n

Founded in 1981 in Texas, the business has been in talks about a far-reaching financial restructuring for more than a year.<\/p>\n

A formal restructuring plan was sanctioned by the High Court in May this year with the aim of writing off much of its debt and injecting new cash into the business.<\/p>\n

<\/p>\n

<\/a><\/p>\n

This was subsequently overturned, prompting talks with creditors about a revised agreement.<\/p>\n","protected":false},"excerpt":{"rendered":"More than 2,000 Scotland-based jobs are at risk as oil and energy services group Petrofac has applied for…\n","protected":false},"author":2,"featured_media":227865,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[49,50,51,47,52,48],"class_list":{"0":"post-227864","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-headlines","8":"tag-headlines","9":"tag-news","10":"tag-top-news","11":"tag-top-stories","12":"tag-topnews","13":"tag-topstories"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/227864","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=227864"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/227864\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/227865"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=227864"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=227864"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=227864"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}