Copyright Watts Up With That
Essay by Eric Worrall h/t Strativarius – Thousands of jobs at risk “… have applied to the High Court of England and Wales to appoint administrators. …” North Sea oil giant falls into administration with thousands of jobs at risk after energy tax row By Patrick O’Donnell Published: 27/10/2025 – 07:58 Updated: 27/10/2025 – 08:30 A major North Sea oil and energy giant has filed for administrators in a move placing thousands of jobs at risk amid ongoing scrutiny over windfall taxes imposed on the sector. … In a statement, a spokesperson for Petrfoac shared: “Having carefully assessed its options, and the impact of TenneT’s decision… the directors of Petrofac Limited have applied to the High Court of England and Wales to appoint administrators. “When appointed, administrators will work alongside executive management to preserve value, operational capability and ongoing delivery across the group’s operating and trading entities.” … The firm falling into administration would be another obstacle the Labour Government will have to address as ministers attempt to lower bills and keep the UK energy sector afloat. … In recent months, industry representatives have urged the Government to axe windfall taxes on oil giant as part of Chancellor Rachel Reeves’s Autumn Budget. … Read more: https://www.gbnews.com/money/economy-north-sea-oil-petrofac-administration-jobs-energy-tax Appointing administrators in Britain is similar to US Chapter 11. Naturally this criticism of excessive taxes appears to have triggered a finger pointing blame storm, rather than a genuine effort to fix the problem. Swinney ‘spreading misinformation’ on Petrofac Terry Murden, Editor | October 27, 2025 UK Energy minister Michael Shanks has accused First Minister John Swinney of spreading “deliberate misinformation” on the troubles at oil services company Petrofac. … In a post on social media site X, he said: “This is incredibly concerning news for employees of Petrofac, their families, and the wider community. The UK Government must urgently revisit the Energy Profits Levy,” adding that “ScotGov stands ready to support all those affected by today’s news.” … [UK Energy Minister] Mr Shanks said: “The administration of Petrofac’s top company is a product of longstanding issues in their global business. The UK arm has not entered administration and is continuing to operate as normal. … “This is deliberate misinformation and reckless, especially from the First Minister [of Scotland]. The UK arm of Petrofac is a successful, growing company and all of us have a responsibility to support it, not to undermine it.” … Read more: https://dailybusinessgroup.co.uk/2025/10/swinney-spreading-misinformation-on-petrofac/ The full first article also mentions Petrofac were embroiled in a Middle Eastern corruption scandal, in 2021 they were fined £70 million for paying bribes to secure contracts in the Middle East. It is possible management incompetence contributed – getting busted paying bribes in the Middle East suggests a level of carelessness. But punitive British energy windfall taxes imposed by Britain’s deep green socialist administration can’t have helped. The high profile bankruptcy and public argument between senior politicians risks alerting ordinary Britons to the realisation a large part of their utility bill pain is caused by energy companies passing on government taxes and compliance costs. Whatever happens this is bad for the current UK government. If the Starmer government caves and offers Petrofac a lifeline, other North Sea companies will demand equal treatment. But if they let Petrofac fall, Scotland, traditionally a strong support base for the current administration in national elections, might change their minds about who they support.
