Petrofac’s collapse puts 2,000 UK jobs at risk as administrators scramble for buyer

On Monday, October 27, 2025, Petrofac — the Aberdeen-based global oil and gas services giant — filed for administration, triggering an immediate crisis for nearly 2,000 UK workers, most of them in Scotland. The announcement, made at 9:00 AM UTC, sent shockwaves through North Sea energy circles. What makes this more than just another corporate collapse is that Petrofac doesn’t just service oil platforms — it keeps them running. And right now, those platforms are still producing. The UK government is scrambling to prevent a collapse that could derail the entire 2030 decarbonisation roadmap.

Why Petrofac Matters More Than You Think

Most people don’t know the name Petrofac, but they rely on its work every time they turn on a light or heat their home. The company maintains offshore platforms for BP plc, Shell plc, Ithaca Energy plc, and EnQuest plc. It’s also building and maintaining the Sofia offshore wind project — one of the UK’s most critical renewable energy developments in the North Sea. Lose Petrofac, and you risk losing not just jobs, but energy reliability.

And here’s the twist: while the global parent company is in administration, the UK subsidiary — employing about 2,000 people — is still operating normally. That’s not a loophole. It’s a lifeline. The Department for Energy Security and Net Zero, led by Secretary of State Ed Miliband, confirmed the UK arm is "in robust health" — a rare phrase in corporate distress. But that’s only true if someone buys it. Fast.

Who’s Trying to Save It — and Who’s Out

Administrators Teneo are under intense pressure. Their job? Find a buyer — yesterday. Potential suitors? Aker BP ASA, Worley Limited, and EnerMech Group. All three have the technical expertise and North Sea presence to absorb Petrofac’s operations. But Wood Group plc is out — its own likely takeover by Sidara makes it too unstable to take on another complex acquisition.

"There’s a long list of companies that could snap this up at a discount," said Alex Paterson, lead oilfield services analyst at Peel Hunt. "But the real asset isn’t the equipment. It’s the people. The engineers in Aberdeen, the welders on the rigs, the project managers who’ve spent decades mastering the North Sea’s brutal conditions. Those skills don’t vanish just because a balance sheet crashes. Someone will hire them. The question is: will they stay together?"

The Government’s Tightrope Walk

On the same day the news broke, Michael Shanks, the UK Energy Minister, stood in the House of Commons and told MPs: "There is reason to be optimistic about a commercial resolution."

That’s not just political spin. It’s strategic realism. The government knows that if Petrofac’s UK operations fracture — if its contracts are split among seven different contractors — the cost of coordination, delays, and safety gaps could be catastrophic. The Department for Energy Security and Net Zero has already begun emergency talks with all potential buyers. They’re not offering cash. They’re offering continuity — guaranteed access to UK energy infrastructure, priority in future offshore tenders, and fast-tracked regulatory approvals.

"The UK arm is continuing to operate as normal," confirmed a Petrofac spokesman. "Management are working to minimise disruption for clients and employees." That’s the line they’re sticking to. But behind the scenes? It’s a race against time. Administrators have days, not weeks, to lock in a deal. A delay beyond 30 days could trigger supplier freezes, contract cancellations, and the slow unraveling of the very workforce the government wants to protect.

What This Means for the 2030 Target

Let’s be clear: Petrofac’s collapse isn’t just a labor issue. It’s a climate issue.

Mr. Miliband’s plan to decarbonise the UK’s electricity system by 2030 relies heavily on offshore wind. And Petrofac isn’t just a contractor — it’s a key enabler. The Sofia offshore wind project, currently under construction, needs Petrofac’s specialized vessels and engineering teams. If those teams scatter, the project slips. And if Sofia slips, so does the UK’s ability to hit its 2030 renewables target.

"We’re not just talking about jobs," said one anonymous senior energy official. "We’re talking about whether the UK can credibly claim to be leading the global energy transition. Petrofac is the glue holding the old and the new together. Break that glue, and everything gets messy."

What Happens Next?

Expect an announcement within 10 to 14 days. That’s the industry’s best guess. If a buyer emerges, Petrofac’s UK operations will be rebranded, not shut down. If no buyer appears, the government may step in with emergency funding — but only as a last resort. The last thing ministers want is to nationalize a private contractor.

Meanwhile, workers in Aberdeen are holding their breath. Some have already been told to prepare for redundancy. Others are being quietly approached by rival firms. The real tragedy? Many of these engineers are in their 40s and 50s. They’ve spent their careers on North Sea platforms. They don’t want to relocate. They don’t want to retrain. They just want to keep working.

"We’ve seen this before," said Paterson. "In 2016, when oil prices crashed, dozens of service firms went under. But the workforce didn’t disappear. They just moved. The difference this time? The stakes are higher. The energy transition isn’t a choice anymore. It’s law. And Petrofac is one of the few companies that can bridge the old world and the new."