Directors are on standby this weekend to deal with the collapse of Petrofac, the oil and vitality providers group – an insolvency which may threaten the way forward for greater than 2,000 jobs in Scotland.
Sky Information has learnt that administrators of Petrofac have lined up Teneo for an administration course of which could possibly be confirmed as early as Monday morning.
The corporate’s board, chaired by former Anglo American finance director Rene Medori, is claimed to be holding emergency talks this weekend.
One trade government mentioned a choice to file for administration was prone to be taken earlier than the inventory market opens on Monday.
Ed Miliband, the vitality secretary, and different ministers have been briefed on the state of affairs, with greater than 2,000 Scottish-based jobs doubtlessly in danger.
Kroll, the advisory agency, has been engaged by the Division for Vitality Safety and Web Zero to work with ministers and officers on the unfolding disaster.
Authorities sources claimed this weekend that Petrofac’s UK operations have been “rising”.
“This authorities is supporting jobs and funding in Scotland together with constructing a world main carbon seize trade within the North Sea, alongside our largest ever funding in offshore wind,” one official mentioned.
A supply near Petrofac mentioned on Saturday that the UK arm of the group had not been beset by any lossmaking contracts and can be in a powerful place to safe its future.
The administration course of would have an effect on the guardian firm, Petrofac Restricted, which doesn’t immediately make use of the corporate’s workforce, they added.
Petrofac’s potential collapse comes at a delicate time for Mr Miliband, who’s coming beneath huge strain to allow extra North Sea oil and fuel drilling regardless of Labour’s manifesto dedication to not grant licences on new fields.
Petrofac employs about 7,300 folks globally, in response to a latest inventory change submitting.
It designs, constructs and operates offshore tools for vitality corporations.
The corporate’s shares have been suspended since April.
Petrofac, which now has a market capitalisation of barely £20m, has been mired in monetary bother for years.
As soon as-valued at greater than £6bn, it has been drowning in a sea of debt, and confronted a Critical Fraud Workplace investigation which resulted in a 2021 conviction for failing to stop bribery, and the fee of greater than $100m in penalties.
In a inventory change announcement on Thursday, Petrofac mentioned the cancellation of a contract by TenneT, an operator of electrical energy grids in Europe which is its largest buyer, meant {that a} solvent restructuring was not viable.
“Having fastidiously assessed the impression of TenneT’s determination, the Board has decided that the restructuring, which had final week reached a sophisticated stage, is not deliverable in its present type,” the corporate mentioned.
“The group is in shut and fixed dialogue with its key collectors and different stakeholders because it actively pursues different choices for the group.
“Within the meantime, Petrofac stays targeted on serving its purchasers and sustaining operational functionality and supply of providers throughout its companies.”
Based in 1981 in Texas, Petrofac has been in talks a few far-reaching monetary restructuring for greater than a yr.
A proper restructuring plan was sanctioned by the Excessive Courtroom in Could 2025 with the goal of writing off a lot of its debt and injecting new fairness into the enterprise.
This was subsequently overturned, prompting talks with collectors a few revised settlement.
If Petrofac does fall into administration, it’s anticipated to be damaged up, with a few of its belongings – together with key contracts – prone to be taken over by different trade gamers.
Petrofac has been contacted for remark.
A DESNZ spokesman declined to remark.
