North Sea oil services group Petrofac could ‘collapse on Monday’

Saturday 25 October 2025 11:49

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Petroface, a North Sea oil and energy services group, could file for bankruptcy as early as Monday morning before the market opens, it was reported.

The company’s board reportedly held an emergency meeting at the weekend to discuss the company’s possible bankruptcy, putting around 2,000 jobs in Scotland at risk.

It has also approached insolvency consultants at Teneo to handle its administration while the Department of Energy Security and Net Zero have approached advisers at Kroll to handle the crisis, according to Sky News.

An industry official told the broadcaster that a decision on filing for administration could be made as early as Monday morning.

The Telegraph reports that Ed Miliband has alerted officials to the possible collapse of the North Sea operator used by offshore energy companies including Shell, BP and TotalEnergies.

Petrofac employs thousands more people worldwide and oversees safety obligations at several locations in the North Sea.

The London Stock Exchange-listed company saw its share price fall by more than two-thirds over the past year amid wider business struggles involving corruption scandals in the Middle East and disruptions at oil refineries in Thailand.

Employment pressures in the North Sea

The company’s collapse would be another blow to the government’s efforts to lower energy bills and protect jobs across British industry.

Labor ministers have come under intense pressure over their stance in blocking new oil permits in the North Sea and rushing to remove fossil fuels from power stations across the country.

Business leaders have called on the government to remove windfall taxes from oil giants, and reports suggest the plan is being considered in the Budget.

Tony Blair’s think tank also called on the government to abandon the 2030 clean energy target and focus on creating an energy bill to ease the transition to net zero by 2050.

Keir Starmer is also facing calls from the Trump administration in the US to expand oil projects in the North Sea.

Scottish MPs also said that more jobs in renewable energy could not offset losses in the energy sector.