In a significant development for the energy services industry, American company CB&I has announced a deal to acquire the assets of Petrofac, a British firm that had recently fallen into administration. This acquisition is set to secure the jobs of thousands of talented individuals, primarily based in Aberdeen, Scotland.
Petrofac, a once prominent FTSE 100 company, has faced a series of challenges in recent years, including a Serious Fraud Office investigation and a string of profit warnings. The company’s troubles culminated in its entry into administration in October, following the collapse of a renewable contract in the Netherlands and a wider slump in its fortunes.
However, the acquisition by CB&I, a Texas-based firm, has provided a lifeline for Petrofac’s asset solutions business. The deal, which is expected to be completed in the first quarter of 2026, will ensure the continued employment of around 3,000 Petrofac employees in the UK, with approximately 2,000 of them based in Aberdeen.
Tareq Kawash, Petrofac’s group chief executive, expressed his satisfaction with the outcome, stating, “This is a great outcome for the asset solutions business, supporting job security for 3,000 talented team members.”
James Bennett, the joint administrator for Petrofac, echoed these sentiments, describing the deal as “a very positive outcome” for the company and its employees.
Mark Butts, the president and chief executive of CB&I, also welcomed the acquisition, noting 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 renewable energy projects, as well as providing engineering, project management, and logistical services. The company has been involved in the operation of North Sea oil platforms for firms including BP and Shell.
Despite its recent struggles, Petrofac’s acquisition by CB&I represents a significant opportunity for the energy services industry in the UK. The deal not only secures the jobs of thousands of skilled workers but also ensures the continued operation of a vital component of the North Sea oil and gas industry.
