Copyright scotsman
A Labour minister has accused John Swinney of spreading “deliberate misinformation” about Petrofac after the oil and gas services firm filed for administration. Michael Shanks said the First Minister was being “reckless” when talking about the company. The firm is filing for insolvency after recent restructuring plans collapsed, which has reportedly put around 2,000 Scottish jobs at risk. Mr Swinney said the news was “incredible concerning” for employees and their families. But Mr Shanks pointed out the UK arm of Petrofac has not gone into administration and is “a successful, growing company”. Mr Swinney shared a story about Petrofac filing for administration on X and 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. [The Scottish Government] stands ready to support all those affected by today’s news.” Mr Shanks said: “This is deliberate misinformation and reckless, especially from the First Minister. The UK arm of Petrofac is a successful, growing company and all of us have a responsibility to support it, not to undermine it.” On Monday, Petrofac told investors that it has applied to the High Court to appoint administrators. The firm employs more than 7,000 workers globally. This includes around 2,000 employees from its UK base in Aberdeen, with around 1,200 of these offshore and a further 800 onshore in training and operational roles. Read The Steamie - our dedicated politics newsletter Petrofac said it will now enter insolvency after Dutch electricity grid TenneT terminated a major contract to build windfarms. The company stressed the administration would affect the group’s main holding company. It will continue to trade and assess options for an alternative restructuring, with different merger and acquisition options also being explored with its key creditors. Advisers at corporate finance firm Teneo are expected to advise over the administration. “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 company said. 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. It also has smaller offices in London, Woking and Great Yarmouth. A company spokesman 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.”
