Petrofac's Future Secured: Thousands of Jobs Saved at North Sea Oil and Gas Firm
In a significant development for the energy sector, American company CB&I has stepped in to rescue thousands of jobs at Petrofac, a once-leading energy services firm. The deal, announced for the first quarter of 2026, involves the acquisition of Petrofac's asset solutions business, which employs 3,000 people in the UK, with a significant presence in Aberdeen.
This move comes as a relief after Petrofac faced administration in October due to the collapse of a renewables contract in the Netherlands and a broader decline in its performance. The company's group chief executive, Tareq Kawash, expressed optimism, stating that this deal ensures job security for the talented team members of the asset solutions business.
James Bennett, the joint administrator, praised the deal as a positive outcome, and Mark Butts, president and CEO of CB&I, echoed this sentiment. Butts highlighted the shared management philosophies and industry-leading safety performance between the two firms, indicating a promising collaboration.
Petrofac, founded in Texas in 1981, has a rich history in the oil, gas, and renewables sectors, designing and building facilities for major projects. They have also been instrumental in the operation of North Sea oil platforms for well-known companies like BP and Shell. Despite its past success as a FTSE 100 firm, Petrofac faced a downturn in recent years, marked by a Serious Fraud Office investigation and a series of profit warnings, leading to a slump in its value from around £6bn to its current state.
With this acquisition, CB&I not only secures thousands of jobs but also gains a valuable asset in the energy industry, showcasing the potential for growth and stability in the sector.
