Administrators are on standby this weekend to handle the collapse of Petrofac, the oil and energy services group – an insolvency which could threaten the future of more than 2,000 jobs in Scotland.
Sky News has learnt that directors of Petrofac has lined up Teneo for an administration process which could be confirmed as early as Monday morning.
The company’s board, chaired by former Anglo American finance director Rene Medori, is said to be holding emergency talks this weekend.
One industry executive said a decision to file for administration was likely to be taken before the stock market opens on Monday.
Ed Miliband, the energy secretary, and other ministers have been briefed on the situation, with more than 2,000 Scottish-based jobs potentially at risk.
Kroll, the advisory firm, has been engaged by the Department for Energy Security and Net Zero to work with ministers and officials on the unfolding crisis.
Government sources claimed this weekend that Petrofac’s UK operations were “growing”.
“This government is supporting jobs and investment in Scotland including building a world leading carbon capture industry in the North Sea, alongside our biggest ever investment in offshore wind,” one official said.
A source close to Petrofac said on Saturday that the UK arm of the group had not been beset by any lossmaking contracts and would be in a strong position to secure its future.
The administration process would affect the parent company, Petrofac Limited, which does not directly employ the company’s workforce, they added.
Petrofac’s potential collapse comes at a sensitive time for Mr Miliband, who is coming under enormous pressure to permit more North Sea oil and gas drilling despite Labour’s manifesto commitment not to grant licences on new fields.
Petrofac employs about 7,300 people globally, according to a recent stock exchange filing.
It designs, constructs and operates offshore equipment for energy companies.
The company’s shares have been…
