Thousands of jobs saved at North Sea oil and gas firm

Thousands of jobs are set to be saved after part of energy services firm Petrofac was bought out of administration.

American company CB&I has announced it has entered into a deal to buy the firm’s asset solutions business in the first quarter of 2026.

Petrofac employs 3,000 people in the UK, including about 2,000 in Aberdeen.

The company went into administration in October after the collapse of a renewables contract in the Netherlands and a wider slump in its fortunes.

Petrofac group chief executive Tareq Kawash said: “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, said the deal was “a very positive outcome”.

Mark Butts, president and chief executive of Texas-based CB&I, also welcomed the deal, stating that both firms “share similar management philosophies and industry-leading safety performance”.

Founded in Texas in 1981, Petrofac designs and builds facilities for oil, gas and renewables projects, as well as providing engineering, project management and logistical services.

It has been involved in the operation of North Sea oil platforms for firms including BP and Shell.

Once a FTSE 100 firm, the company was worth around £6bn at its peak in 2012 but it has slumped in recent years following a Serious Fraud Office investigation and a series of profit warnings.

It also has offices in London, Woking and Great Yarmouth.