Energy services firm Petrofac has seen a significant portion of its UK operations rescued from administration through a strategic acquisition by US company CB&I, securing thousands of jobs in a pivotal move for the beleaguered company. The American firm announced on 24 December 2025 its agreement to acquire Petrofac’s asset solutions business, with the deal anticipated to conclude in the first quarter of 2026.
The acquisition is set to safeguard 3,000 jobs across the UK, including approximately 2,000 positions in Aberdeen, a crucial hub for the North Sea energy sector. Petrofac’s group chief executive, Tareq Kawash, welcomed the development, stating: “This is a great outcome for the asset solutions business, supporting job security for 3,000 talented team members.” James Bennett, joint administrator for Petrofac, echoed this sentiment, describing the deal as “a very positive outcome.”
A Troubled History Culminating in Administration
The sale follows Petrofac’s application to the High Court for administration in October 2025. This move, which targeted the company’s ultimate holding company while operational entities continued to trade, was primarily triggered by the termination of a significant offshore wind contract in the Netherlands. Dutch grid operator TenneT cancelled Petrofac’s involvement in a large 2-gigawatt offshore wind transmission programme, citing the UK firm’s failure to meet contractual obligations. This contract had represented over 80% of the revenue in Petrofac’s engineering and construction division, severely undermining an already fragile restructuring plan.
Petrofac’s financial woes stretch back several years. Once a FTSE 100 constituent with a peak valuation of approximately £6 billion in 2012, the company’s fortunes steadily declined. A major blow came from a Serious Fraud Office (SFO) investigation, launched in 2017, which concluded in October 2021 with Petrofac Limited pleading guilty to seven counts of failing to prevent bribery between 2011 and 2017. The firm was ordered to pay a total penalty of £77 million, comprising a confiscation order, a fine, and legal costs. This “reputational hit” significantly strained relationships with lenders and clients and increased compliance costs, further impacting its ability to secure new contracts, particularly in the Middle East.
By July 2025, Petrofac was reportedly carrying around $4 billion in debt, and its market value had plummeted to just £20 million by May 2025, leading to the suspension of its shares from the London Stock Exchange. Efforts to restructure its finances, including a court-supervised plan that gained High Court approval in May 2025, were overturned in July following objections from joint-venture partners, leaving the company in a precarious financial state ahead of the TenneT contract cancellation.
CB&I’s Strategic Expansion
The acquirer, CB&I (formerly Chicago Bridge & Iron Co), is a Texas-based firm with a history dating back to 1889, primarily known for designing and building storage facilities for the energy and industrial sectors. Owned by a consortium of financial investors led by Mason Capital Management LLC since December 2024, CB&I is seeking to diversify its service offerings. Mark Butts, President and CEO of CB&I, welcomed the deal, noting that both firms “share similar management philosophies and industry-leading safety performance.” The acquisition is expected to establish “CB&I Asset Solutions,” a new global operating unit headquartered in Aberdeen.
North Sea Context and Future Outlook
This acquisition provides much-needed stability for a significant portion of Petrofac’s workforce amidst a challenging period for the wider North Sea energy sector. While once a thriving hub, North Sea oil and gas production has been in decline, with output falling to its lowest levels since the 1970s. The industry faces increasing pressure from the global transition to cleaner energy, volatile commodity prices, and stringent regulatory demands. The preservation of these jobs is a positive signal for the region as it navigates the complexities of energy transition.
The deal not only offers a lifeline to Petrofac’s UK asset solutions business but also strategically positions CB&I to enhance its footprint in the crucial operations, maintenance, and decommissioning services for both traditional and emerging energy assets.
