Petrofac confirms UAE operations stable amid broader restructuring

Dubai: Operations across Petrofac’s portfolio in the UAE are progressing as normal, with teams continuing to support ADNOC in delivering its evolving energy goals, the company said in a statement to Gulf News.

The confirmation follows Petrofac’s announcement that it plans to place Petrofac International Limited (PIL) into administration, extending the court-supervised insolvency process beyond its UK parent company. The Royal Court of Jersey is scheduled to hear the request on November 28, after which the company’s directors intend to seek approval from the High Court of England and Wales.

PIL historically oversaw much of Petrofac’s engineering and construction activity across the Middle East and North Africa. The group noted that the entity no longer holds active contracts. “The Group intends to redeploy PIL’s 120 staff to other Group companies wherever possible,” it said.

Turning point for global structure

When Petrofac Limited entered administration in late October, the company stressed that the process applied only to the holding entity, with trading subsidiaries continuing unaffected. Today’s decision represents the first time a major part of its overseas structure is being brought into the same process.

Petrofac said the step is designed “to ask the Royal Court of Jersey to issue a letter of request to the High Court of England and Wales and seek its assistance in appointing administrators to PIL.”

Broader restructuring goals

According to Petrofac, the move forms part of a wider effort to stabilise operations and restructure the group. Bringing PIL under administration “is expected to facilitate the purpose of Petrofac Limited’s administration, to help preserve the value of the wider Group and to facilitate the planned M&A solutions,” the company added.

Petrofac’s troubles deepened after Dutch grid operator TenneT terminated a major offshore contract in October, prompting the UK entity’s entry into administration and delisting from the London Stock Exchange.

Earlier this month, Petrofac began firing hundreds of staff in the UAE with a day’s notice. Around 180 people in the UAE connected to an offshore wind grid programme that supported most of the company’s engineering and construction revenue were laid off on November 18 and were told that their roles were ending, with November 19 set as their last working day, sources close to the matter told Gulf News.​

Across the wider GCC, Petrofac holds active contracts worth more than $5 billion, including projects in Algeria, Iraq, Oman, and Bahrain. ​

Petrofac reaffirmed that group operations remain operational across key markets. “The Group’s operations will continue to trade. Petrofac continues to advance options for alternative restructuring and M&A solutions with key creditors,” the company stated.

The upcoming Jersey court hearing will mark the next key juncture as Petrofac’s management seeks to align its international businesses under a unified restructuring framework.