Petrofac UAE Operations Stable as Group Pushes Ahead with Global Restructuring
Petrofac UAE operations remain fully stable despite the wider restructuring measures underway for the group’s international business, the company confirmed in a statement. Teams across the Emirates continue to work closely with ADNOC to support the UAE’s long-term energy transition and project delivery commitments.
The reassurance follows Petrofac’s decision to seek administration for Petrofac International Limited (PIL) in Jersey, expanding the ongoing court-supervised insolvency process that began with the UK parent company in October. The Royal Court of Jersey will review the request on November 28, after which directors intend to approach the High Court of England and Wales for the formal appointment of administrators.
What PIL’s Administration Means for the Region
PIL previously oversaw much of Petrofac’s engineering and construction operations across the Middle East and North Africa, though the company clarified that it no longer holds any active contracts. As part of the restructuring, approximately 120 PIL employees will be redeployed to other group entities wherever possible.
Despite these internal shifts, Petrofac emphasised that all trading subsidiaries — including those in the UAE — continue operating without disruption.
A Turning Point in Petrofac’s Global Structure
When Petrofac Limited entered administration in late October, the company stressed that only the parent holding entity was affected. Today’s decision to include PIL marks the first major change to its international corporate structure.
According to the company, the move aims to allow the Jersey court to request help from the High Court of England and Wales in appointing administrators, enabling a more coordinated restructuring across multiple jurisdictions.
Strategic Move to Preserve Value and Support M&A Plans
Petrofac described the step as part of a broader roadmap designed to stabilise operations and advance long-term restructuring and M&A activities. The group said bringing PIL under administration would help:
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Preserve the value of the wider organisation
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Strengthen financial stability during restructuring
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Support potential M&A solutions currently under review
The company has been under intensified financial pressure since Dutch grid operator TenneT terminated a major offshore contract in October, triggering the UK entity’s collapse into administration and its subsequent delisting from the London Stock Exchange.
Layoffs in the UAE Linked to Wind Grid Programme
Sources confirmed that around 180 UAE-based employees connected to an offshore wind grid programme — one that contributed significantly to the company’s global engineering and construction revenues — were laid off on November 18. Their final working day was set for November 19.
Despite this setback, Petrofac continues to hold active GCC contracts worth more than $5 billion, including major projects in Algeria, Iraq, Oman, and Bahrain.
Petrofac Reaffirms Business Continuity Across Key Markets
In its latest statement, the company stressed:
“The Group’s operations will continue to trade. Petrofac continues to advance options for alternative restructuring and M&A solutions with key creditors.”
The upcoming Jersey court hearing will be a decisive moment as management works to align its global operations under a unified restructuring framework.
