A NORTH Sea oil and gas firm filed for administration yesterday, putting thousands of British jobs at risk.
Petrofac employs about 2,000 people at its UK base in Aberdeen, including 1,200 offshore employees and a further 800 training and operational roles.
The oil services group is tumbling into insolvency after a planned restructure collapsed last week, when Dutch grid operator Tennet cancelled a multi-billion-pound contract to build wind farms.
Petrofac told investors it had asked the High Court to appoint administrators.
The heavily indebted firm employs more than 7,000 workers globally.
However, it stressed that the administration will only affect the group’s main holding company. It will continue to trade as normal in the North Sea and assess options for an alternative restructuring.
Consultants at corporate finance firm Teneo are expected to advise.
Petrofac said: “Administrators will work alongside executive management to preserve value, operational capability and ongoing delivery across the group’s operating and trading entities.”
Petrofac’s UK business is involved in the operation of North Sea oil platforms for firms including BP and Shell. It also has smaller offices in London, Woking and Great Yarmouth.
The company was worth £6billion at its 2012 peak but has since slumped.
The Energy Department said the Government would work with Petrofac as it focuses on its long-term future.
LESS IS MORE IN STORES
COFFEE, toothpaste and an indigestion remedy have suffered most from shrinkflation, Which? has found.
The consumer group said Aquafresh toothpaste increased from £1.30 for 100ml to £2 for 75ml at Tesco, Sainsbury’s and Ocado.
Nescafe instant coffee shrank from 200g to 190g but remained the same price at Morrisons, Tesco and Asda.
And £14 bottles of Gaviscon shrank from 600ml to 500ml at Sainsbury’s.
Which? retail editor Reena Sewraz said: “Supermarkets must be more upfront about their prices.”
SINGLE SAUCE
THE competition watchdog has raised concerns over a takeover by food giant Greencore that would create one of the largest suppliers for chilled sauces.
The firm, which supplies sandwiches for supermarkets including M&S and Waitorse, has struck a £1.2billion deal to take over Bakkavor.
Both companies have said they will work with the watchdog to secure its approval.
HSBC FUND HIT
HSBC has set aside £826million to pay damages to fund investors conned by disgraced Wall Street banker Bernie Madoff.
It lost an appeal in a Luxembourg court on Friday after Herald Fund SPC sued HSBC in 2009, claiming losses of cash and securities linked to the Madoff Ponzi scheme, one of the biggest financial scandals in history.
Shares in HSBC fell as much as 2 per cent in early trading yesterday.
