Administrators for the collapsed oilfield services giant Petrofac are in a race against time to secure a sale of its profitable UK North Sea operations before Christmas, a move that could preserve thousands of British jobs.
Deadline for a Deal
Teneo, the firm handling Petrofac's insolvency, is aiming to sign a sale agreement before the end of the year. This follows the receipt of a handful of bids for the UK business late last week, according to City sources. The process has reportedly been narrowed down from dozens of initial interested parties to a shortlist of roughly five serious contenders.
A Corporate Collapse
Petrofac, once a prestigious FTSE-100 listed company, fell into administration in October 2025. The collapse was triggered by a major European customer cancelling a significant contract. The company, which designs, builds, and operates offshore equipment for energy firms, has been grappling with immense debt and the fallout from a Serious Fraud Office investigation.
That probe led to a 2021 conviction for failing to prevent bribery, resulting in penalties exceeding $100 million. Its shares were suspended in April as it attempted a financial restructuring.
What Happens Next?
The identity of the leading bidders for the UK arm remains unclear. However, securing a swift sale is viewed as critical for the continuity of operations and the protection of employment. Sale processes for Petrofac's other international divisions, including its Middle East businesses, are expected to begin in the new year.
A spokesman for the administrators declined to comment on the ongoing negotiations.
