(Reuters) -Oilfield services provider Petrofac said on Monday it has applied to the High Court of England and Wales to appoint administrators after grid operator TenneT’s termination of its involvement in a major offshore wind project in the Netherlands.
In 2023, Petrofac and Hitachi Energy were awarded a 13-billion-euro ($15.16 billion) contract by Dutch-German electricity grid operator TenneT to deliver six 2-gigawatts offshore wind grid connection projects in the Netherlands and Germany.
Last week, TenneT said it has decided to terminate the portion of the contract related to Petrofac’s scope, as it has failed to meet its contractual obligations.
The oilfield services provider has been restructuring its finances under pressure from rising costs and delayed payments, a move that reflects wider challenges facing the sector in a volatile energy market.
Petrofac said the administration would be limited to the group’s ultimate holding company only, with operations continuing to trade while it explores restructuring and M&A options with creditors.
Petrofac, which develops and operates infrastructure for oil, gas, refining, petrochemicals, and renewable energy, said earlier this month that its ongoing restructuring would leave existing shareholders with no residual value.
The company retains the support from its Ad Hoc Group of Noteholders as well as RCF and Term Loan lenders, who are supporting the group through forbearance and maturity extensions during the process, it said on Monday.
Sky News reported on Saturday that Petrofac has appointed Teneo as administrator and its board is engaged in emergency talks over the weekend.
($1 = 0.8575 euros)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich and Sherry Jacob-Phillips)
