Petrofac files for bankruptcy after losing major Dutch wind-contract

Petrofac, a provider of oilfield services in the Netherlands, said it had applied to the High Court of England and Wales for the appointment of administrators following the termination of TenneT’s involvement in an offshore wind project.

The Dutch-German electricity grid operator TenneT awarded Petrofac & Hitachi Energy a contract worth 13 billion euros ($15.16billion) in 2023 to deliver six 2 gigawatts offshore grid connection projects.

TenneT announced last week that it had decided to terminate its contract with Petrofac because it failed to fulfill contractual obligations.

Oilfield Services has been forced to restructure its finances due to rising costs and late payments. This reflects the wider challenges that face this sector on a volatile market.

Petrofac has said that the administration will be limited to its ultimate holding company, and operations will continue to run while the company explores restructuring options and M&A with creditors.

Petrofac which operates and develops infrastructure for oil and gas, refining and petrochemicals as well as renewable energy said this month that the ongoing restructuring will leave its existing shareholders with zero residual value.

It said that the company has retained the support of its Ad Hoc Group of Noteholders, as well as RCF lenders and Term Loan lenders who have extended maturity dates and forbearance during this process.

Sky News reported Saturday that Petrofac had appointed Teneo to the position of administrator, and that its board was engaged in emergency discussions over the weekend.

(source: Reuters)