US-based energy services company Petrofac has entered administration for its holding company, affecting 2,000 employees in Scotland but ensuring North Sea operations remain intact. Petrofac faces financial challenges, worsened by contract terminations and profit warnings, leading to a drop in value from £6bn to £20m. Administrators aim to preserve operational capability and value.

Established in Texas in 1981, Petrofac specializes in oil, gas, and renewable energy projects, working with major firms like BP and Shell. The company’s financial position deteriorated due to delayed payments and rising costs, prompting a suspension of share trading. The Aberdeen Chamber of Commerce expresses concern over the impact on the North Sea supply chain.

Petrofac’s UK operations continue to function, supported by skilled workers and successful contracts, despite the global administration filing. The UK government plans to assist Petrofac as it navigates its future, acknowledging the company’s significance in the energy industry. The administration underscores the need for government action to restore industry confidence and stability.

Read more at Yahoo Finance: Petrofac files for administration amid financial challenges