More than 2,000 Scotland-based workers face uncertainty after oil and energy services group Petrofac announced it has applied for administration, placing a significant portion of the nation’s skilled offshore workforce at risk.
Despite the announcement, Petrofac’s operations are set to continue trading while the company actively seeks restructuring options, including the possibility of a merger or acquisition with its key creditors. Ministers, including Energy Secretary Ed Miliband, have been briefed on the unfolding crisis, with the Department for Energy Security and Net Zero engaging advisory firm Kroll to help coordinate a government response.
Petrofac currently employs around 7,300 people globally, designing, constructing and operating offshore equipment for major energy companies. A potential insolvency is drawing attention not only for its impact on local jobs but for its broader implications for Scotland’s offshore energy sector.
Shadow Secretary of State for Scotland, Andrew Bowie MP, who is hoping to ask an urgent question on the matter in Westminster today, said: “This devastating announcement from Petrofac is catastrophic for the North East and highlights the economic damage being caused by both Labour and the SNP’s opposition to oil and gas.
“The consequences of Labour’s harmful sanctions of increasing the windfall tax, ending the investment allowance and opposing all new oil and gas licences are now being felt, resulting in the loss of thousands of jobs.
“At the heart of this are Petrofac’s staff, and my thoughts go out to the employees whose jobs have been put at risk.
“Keir Starmer and Ed Miliband’s desire to kill off the industry will force us to import expensive fossil fuels from overseas with a far higher carbon footprint.
“Petrofac’s decision is disastrous for Scotland and must act as a catalyst for both Labour and the SNP to support the sector, instead of turning their backs on it.
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“Only the Conservatives are standing up for the oil and gas industry and recognising its importance to our future energy security, jobs and Scotland’s economy.”
Discussions on restructuring and a possible acquisition continue, with ministers and officials monitoring developments as the company works to preserve jobs and maintain service continuity during this challenging period.
