UAE Operations Continue as Normal
Petrofac has reassured stakeholders that its operations across the United Arab Emirates are progressing as usual, with teams actively supporting ADNOC in achieving its evolving energy goals. Despite the company’s ongoing restructuring efforts at the international level, UAE-based projects remain unaffected. Employees continue to deliver engineering and construction services, ensuring the continuity of critical operations and ongoing contracts.
The company emphasized that its UAE operations are stable, reflecting Petrofac’s commitment to operational excellence and client satisfaction in the region. This reassurance is particularly important for ongoing collaborations and strategic projects in the Middle East.
Administration Plans for Petrofac International Limited
Petrofac recently announced its intention to place Petrofac International Limited, or PIL, into administration, extending the court-supervised insolvency process beyond its UK parent company. The Royal Court of Jersey is scheduled to review this request, after which the company will seek approval from the High Court of England and Wales.
PIL has historically managed much of Petrofac’s engineering and construction activities across the Middle East and North Africa. The entity currently has no active contracts. To retain talent and ensure continuity, Petrofac intends to redeploy PIL’s 120 staff to other group companies wherever possible. This approach reflects the company’s focus on workforce stability while navigating complex restructuring processes.
A Turning Point for Petrofac’s Global Structure
When Petrofac Limited entered administration in late October, the process primarily affected the UK holding entity, leaving trading subsidiaries largely unaffected. Bringing PIL into administration represents the first major extension of this process to an international component of the group.
The company explained that this step is designed to request the Royal Court of Jersey to issue a letter to the High Court of England and Wales, seeking its assistance in appointing administrators to PIL. This move is part of a broader effort to bring Petrofac’s international operations under a unified restructuring framework while preserving the value of its global portfolio.
Strategic Goals Behind the Restructuring
Petrofac has framed the inclusion of PIL in administration as a strategic measure to stabilize operations and restructure the wider group. The company aims to preserve value across its global operations and create opportunities for mergers and acquisitions as part of a long-term plan.
This restructuring comes after significant challenges for Petrofac, including the termination of a major offshore contract by Dutch grid operator TenneT. The loss of this contract prompted the UK parent company’s entry into administration and the eventual delisting from the London Stock Exchange. By addressing both operational and financial issues, Petrofac is working to maintain the company’s reputation and deliver sustainable outcomes for clients and employees.
Workforce Impacts in the UAE
Earlier this month, Petrofac undertook workforce reductions in the UAE, affecting hundreds of employees. Around 180 staff connected to an offshore wind grid program, which accounted for most of the company’s engineering and construction revenue in the region, were laid off with a day’s notice. November 19 was reported as their final working day.
Despite these layoffs, Petrofac has emphasized that key operations remain unaffected, and the company is exploring ways to support employees through redeployment and alternative opportunities within the group. Management continues to focus on maintaining operational stability in the UAE while navigating international restructuring challenges.
Active Projects Across the GCC
Petrofac continues to hold active contracts valued at over $5 billion across the wider Gulf Cooperation Council region. Major projects are ongoing in countries such as Algeria, Iraq, Oman, and Bahrain. The company has reassured stakeholders that operations in these markets remain fully operational.
The company also continues to advance options for alternative restructuring and potential mergers or acquisitions, engaging closely with key creditors to secure the long-term viability of its operations. This demonstrates Petrofac’s commitment to balancing operational continuity with broader strategic initiatives.
Future Outlook and Key Court Hearings
The upcoming court hearing in Jersey represents a significant milestone in Petrofac’s restructuring journey. Management will use this hearing to seek judicial approval for the administration of PIL and to coordinate international operations under a unified framework.
This process is expected to strengthen Petrofac’s global structure, helping the company navigate financial and operational challenges while protecting client interests and employee roles where possible. Aligning international subsidiaries within a coherent restructuring strategy is central to the company’s plan to preserve value, maintain operational integrity, and explore strategic growth opportunities.
Commitment to Clients and Long-Term Stability
Throughout this period of transformation, Petrofac has maintained a clear focus on client commitments. UAE-based teams continue to deliver high-quality services, and the company reassures clients that projects will proceed without interruption.
The company’s strategy reflects a careful balance between operational continuity and financial restructuring. By maintaining active projects and redeploying staff wherever possible, Petrofac is positioning itself to emerge from the process with a leaner, more resilient structure capable of supporting long-term growth.
Conclusion
Petrofac’s decision to extend administration to its international operations, including Petrofac International Limited, represents a significant step in its broader restructuring plan. Despite challenges at the parent company level and workforce adjustments in the UAE, operations in key markets continue to function normally.
The company remains focused on stabilizing its global operations, preserving value for employees and clients, and advancing strategic opportunities for growth. The upcoming Jersey court hearing will be critical in formalizing the administration process and aligning Petrofac’s international businesses under a unified framework.
Petrofac’s approach demonstrates a careful effort to balance restructuring with operational continuity, ensuring that its UAE operations and wider GCC projects remain secure while the company navigates this period of transformation.
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