Troubled oil and offshore services company Petrofac is seeking to appoint administrators after a key contract in the offshore wind industry was terminated
The company issued a statement on 27 October 2025 in which it said, “Having carefully assessed its options, and the impact of TenneT’s decision to terminate Petrofac’s scope of work on the 2GW programme in the Netherlands, the Directors of Petrofac Limited, the group’s ultimate holding company, have applied to the High Court of England and Wales to appoint administrators to Petrofac Limited.” The move is a targeted administration of the Group’s ultimate holding company only.
Petrofac said the group’s operations will continue to trade, and options for alternative restructuring and merger and acquisition solutions continue to be actively explored with its key creditors, including the ad hoc group of noteholders, who, the company said, “are supporting the group with continued forbearance arrangements whilst alternative options are explored.”
The company said the group “also retains the support of its revolving credit facility and term loan lenders who continue to extend maturities on a rolling basis.”
Petrofac said that, when appointed, administrators will work alongside executive management to preserve value, operational capability and ongoing delivery across the group’s operating and trading entities.”
As highlighted byOWJ on 24 October, the transmission systems operator (TSO) confirmed it has ‘partially terminated’ a contract with an offshore consortium due to install some of its ‘2GW’ grid connections in the Netherlands and Germany. In March 2023, TenneT had signed a framework co-operation agreement with a consortium comprising Hitachi Energy and Petrofac for six 2GW projects out of the total of 14 grid connection systems that it wants to realise via the 2GW Programme.
In a statement, TenneT said, “Since 2024, Petrofac has been working on a financial restructuring of its business. In the past, TenneT has worked extensively with the /Hitachi Energy consortium on mitigation measures. Since Petrofac has not been able to meet its contractual obligations, TenneT has exercised its right to partial termination of the contract related to the Petrofac scope. At the same time, a solution has been put in place involving a consortium of Hitachi Energy and a replacement contractor.”
Petrofac and Hitachi Energy announced in June 2022 that they were to collaborate to provide joint grid integration and associated infrastructure to support the offshore wind market, applying Petrofac’s engineering, procurement, construction and installation capabilities.
