North Sea energy services provider Petrofac has filed for administration in the UK.
The decision follows TenneT’s cancellation last week of a contract for Petrofac’s scope of work on offshore grid connections for a series of Dutch wind farms, it said.
Petrofac added the “targeted administration” applies to the group’s holding company only, and it will explore options for “alternative restructuring” and M&A solutions with key creditors.
The company has been pursuing financial restructuring options for the business for the past year.
“Having carefully assessed its options, and the impact of TenneT’s decision to terminate Petrofac’s scope of work on the 2GW programme in the Netherlands, the directors of Petrofac Limited have applied to the High Court of England and Wales to appoint administrators to Petrofac Limited,” it said in a statement.
It added the group’s operations “will continue to trade” and, once appointed, the administrators will work alongside the management “to preserve value, operational capability and ongoing delivery across the group’s operating and trading entities”.
TenneT last week confirmed it had terminated a contract with Petrofac for work on six 2GW offshore grid connections, which had been part of a framework agreement signed in 2023.
“Since Petrofac has not been able to meet its contractual obligations, TenneT has exercised its right to partial termination of the contract related to the Petrofac scope,” the TSO stated.
Petrofac said further information on the administration process will be provided in due course.