Petrofac’s long-awaited financial restructuring has collapsed after Dutch-German grid operator TenneT terminated the company’s scope of work on a major offshore wind project.
The Aberdeen-headquartered services group said the plan “is no longer deliverable in its current form,” despite having reached an advanced stage last week.
The termination of Petrofac’s involvement in TenneT’s 2GW offshore grid connection programme marks another setback for the troubled contractor, whose shares remain suspended on the London Stock Exchange pending its delayed 2024 accounts.
“Having carefully assessed the impact of TenneT’s decision, the board has determined that the restructuring is no longer deliverable in its current form,” Petrofac said in a statement. The company added that it is in “close and constant dialogue” with key creditors and stakeholders as it explores alternative options.
Petrofac said it remains focused on maintaining operational capability and delivering services across its businesses. The company employs around 7,300 people across 31 offices worldwide, providing design, construction, and maintenance services for energy infrastructure in the oil, gas, and renewables sectors.
TenneT confirmed that Petrofac had failed to meet its contractual obligations and that it had partially terminated the contract. The operator said a new consortium — comprising Hitachi Energy and a replacement contractor — will take over Petrofac’s scope, covering several offshore grid connection projects in the Netherlands and Germany, including IJmuiden Ver Alpha, Nederwiek 1 and 3, Doordewind 1 and 2, and LanWin5.
The contract had originally been part of a framework signed in 2023 for Petrofac and Hitachi Energy to deliver six of TenneT’s 14 planned 2GW grid connection systems.
Petrofac’s financial troubles have deepened over the past year despite securing court approval in May to raise $355m in new funding. The company had faced opposition to that plan from partners Saipem and Samsung E&A over a separate clean fuels project at a Thai Oil refinery. The group said further information on its next steps will be provided “in due course.”
