More than 2,000 Scottish jobs at risk as Petrofac set to collapse into administration

More than 2,000 Scottish jobs are at risk after North Sea platform company Petrofac files for administration.

On Monday, the London-based company confirmed it had applied to the High Court of England and Wales to appoint administrators.

The decision comes after Petrofac’s contract for work on a major 2GW programme in the Netherlands was terminated.

Petrofac designs, builds, manages and maintains infrastructure for the industry, as well as providing training to the people who support them.

The company said it would continue to trade while it explores “alternative restructuring and M&A (mergers and acquisitions) solutions” with its key creditors including the Ad Hoc Group of Noteholders.

Petrofac’s UK business is based in Aberdeen and is involved in the operation of North Sea oil platforms for firms including BP and Shell.

A company spokesperson said: “Petrofac has a number of fundamentally strong businesses and we are focused on delivering the best possible outcome for them through this process.

“Our long-established North Sea business continues to operate as normal, and management are working to minimise disruption for clients and employees.”

The company was worth around £6bn at its peak in 2012 but has slumped in recent years.

It was worth around £20m when its shares were suspended in May after being severely impacted by an investigation by the Serious Fraud Office and volatile energy prices.

Shadow secretary of state for Scotland, Andrew Bowie MP, said the decision is “disastrous” for Scotland.

“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.”

He added: “At the heart of this are Petrofac’s staff, and my thoughts go out to the employees whose jobs have been put at risk.

Bowie accused Keir Starmed and Ed Milliband of having a desite to “kill off” the industry.

“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,” he added.

“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.”

Petrofac has been contacted for comment.