Petrofac seeks administration after contract loss, thousands at risk

Petrofac has applied to the High Court of England and Wales to appoint administrators after a key contract was terminated, a move the oil and gas services group said on Monday will put thousands of jobs at risk and force it into insolvency proceedings for its main holding company. The company said the decision followed the withdrawal by Dutch grid operator TenneT of a major contract to build windfarms linked to a 2 gigawatt energy programme in the Netherlands.

The London-listed group employs more than 7,000 people globally, with around 2,000 based at its North Sea hub in Scotland, company statements and reports said. Petrofac said it will continue to trade while administrators are appointed and that options for alternative restructurings, including merger and acquisition solutions, are being actively explored with key creditors. Advisers from corporate finance firm Teneo are expected to assist in the administration process.

In a statement, Petrofac said, "When appointed, administrators will work alongside executive management to preserve value, operational capability and ongoing delivery across the group's operating and trading entities." The company also said administrators...