Thousands of North Sea Petrofac jobs saved in Christmas Eve rescue deal

Around 3,000 Scottish jobs have been saved, with a US firm buying North Sea platform company Petrofac’s Asset Solutions business.

It comes just two months after the company filed for administration – putting workers at its UK headquarters in Aberdeen at risk.

At the time, the company said it was exploring “alternative restructuring and M&A (mergers and acquisitions) solutions” with its key creditors.

On December 24, the US firm CB&I announced what it called the “strategic acquisition” of the business.

Following the close of the transaction, CB&I will operate as one company with two global business units – CB&I Asset Solutions based in Aberdeen, and CB&I’s existing operations, CB&I Storage Solutions, based in Texas.

Tareq Kawash, group chief executive of Petrofac, said: “This is a great outcome for the Asset Solutions business, supporting job security for 3,000 talented team members.

“CB&I is a strong business with clear growth objectives, now bolstered by the addition of Asset Solutions’ integrated service offering.

“I want to thank the Asset Solutions team, our customers and supply base for their support as we have worked to secure the business’ future.”

Petrofac’s UK business is based in Aberdeen and is involved in the operation of North Sea oil platforms for firms including BP and Shell.

The company was worth around £6bn at its peak in 2012, but has slumped in recent years.

It was worth around £20m when its shares were suspended in May after being severely impacted by an investigation by the Serious Fraud Office and volatile energy prices.

Mark Butts, CB&I president and chief executive officer, said: “Asset Solutions’ leadership demonstrates pride in operational excellence, commitment to customers, and resilience through challenging circumstances.

“Our organizations share similar management philosophies and industry-leading safety performance.

“With this combination we see strong cultural alignment, diversification benefits, and clear opportunities to enhance performance and deliver stable cash flow generation. These factors collectively support CB&I’s long-term growth objectives.”