Petrofac’s restructuring plans have been thrown into doubt after Dutch-German grid operator TenneT terminated the company’s scope of work on its 2GW offshore grid connection programme.
The energy services group said it had received notification from TenneT “terminating its scope of work on the 2GW programme with immediate effect”.
In a market update last night, it added: “Having carefully assessed the impact of TenneT’s decision, the board has determined that the restructuring, which had last week reached an advanced stage, is no longer deliverable in its current form.
"The group is in close and constant dialogue with its key creditors and other stakeholders as it actively pursues alternative options for the group. In the meantime, Petrofac remains focused on serving its clients and maintaining operational capability and delivery of services across its businesses.”
Petrofac had been working alongside Hitachi Energy to deliver six 2GW projects for TenneT under a framework agreement signed in 2023.
In a statement confirming its decision, TenneT said: “Since 2024 Petrofac has been working on a financial restructuring of its business.
"In the past period TenneT has worked extensively with the Petrofac/Hitachi Energy consortium on mitigation measures. Since Petrofac has not been able to meet its contractual obligations, TenneT has exercised its right to partial termination of the contract related to the Petrofac scope.
"At the same time, a solution has been put in place involving a consortium of Hitachi Energy and a replacement contractor.”
TenneT added that its “leading objective – shared by the new consortium – is to meet its legal and societal tasks and deliver the offshore grid connection projects as outlined in the Development Framework in the Netherlands and Netzentwicklungsplan in Germany.”
Petrofac said it will share further information “in due course.”
FTSE100
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Brent crude oil futures were down 0.40% at $65.59 a barrel.