Following TenneT’s termination of Petrofac’s involvement in the Netherlands’ 2 GW offshore grid connection program, the UK firm has filed for administration.
On 27 October, Petrofac announced that the Directors had applied to the High Court of England and Wales to appoint administrators to Petrofac Limited, the Group’s holding company, clarifying it was a “targeted administration.” The Group’s operations will continue trading.
“Administrators will work alongside Executive Management to preserve value, operational capability, and ongoing delivery across the Group’s entities,” the company stated.
In March 2023, TenneT signed a framework agreement with a consortium of Hitachi Energy and Petrofac for six offshore wind grid connection projects. These include the Dutch connections IJmuiden Ver Alpha, Nederwiek 1, Nederwiek 3, Doordewind 1, Doordewind 2, and Germany’s LanWin5 grid connection.
TenneT exercised its right to partially terminate Petrofac’s contract due to unmet obligations, implementing a solution with Hitachi Energy and a replacement contractor.
Petrofac acknowledged that its planned financial restructuring could no longer proceed as initially intended after receiving the termination notice. The company is exploring alternatives and engaging with key creditors and stakeholders.
In its restructuring update, Petrofac stated it is actively exploring options for alternative restructuring and merger and acquisition solutions.
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