Unite made its call after Petrofac’s parent company filed for administration (yesterday), jeopardising around 2,000 UK jobs, predominantly based at its Aberdeen hub.
The oil and gas services firm filed for administration following significant financial issues including a 2021 fine of £77 million for a bribery scandal and the subsequent difficulty in securing new contracts. The cancellation of a major offshore wind contract by Dutch grid operator TenneT, which dismantled a planned financial restructuring aimed at tackling the company’s substantial debt, appears to have been the final blow.
The administration applies only to the holding company, not the operating entities, which will continue to trade normally with creditor support.
Potential path forward
For UK-based operations, including its North Sea business, it has created significant uncertainty for the workforce and local supply chain. However, the UK arm has not entered administration itself and is continuing to operate.
The Department for Energy Security and Net Zero (DESNZ) has confirmed it is working with the UK company, and administrators will explore options like alternative restructuring or a sale of its viable operational units.
According to Unite, prospective buyers are already lining up to take over Petrofac’s UK business which they describe as “a profitable company with a highly skilled workforce and plenty of work in the pipeline”.
Workers have also received short-term guarantees regarding pay.
Unite general secretary Sharon Graham said: “It is now essential that everyone works together to ensure a successful transition and a stable long-term future for the company’s workforce.”
While the future remains unclear, there is hope that the profitable parts of the business, including the North Sea operations, can be preserved or sold, offering a potential path forward for the UK workforce.
Image from Petrofac.