Alan Stewart, Aberdeen-based partner at accountants and advisors MHA says:

 “Petrofac’s administration is another stark warning from the North Sea. Fiscal instability, unclear policy and poor project visibility are driving distress across the supply chain. 

“Offshore Energies UK (OEUK) estimates that nearly 1,000 direct and indirect jobs are being lost every month across the sector, and the administration of Petrofac’s holding company will cause understandable concern among its North East workforce.

 “Whilst Petrofac had been trying to restructure for a couple of years, this bleak news again highlights the need for urgent reform of the Energy Profits Levy and a credible long-term transition strategy. Without this, more jobs and investment will leave Aberdeen and beyond – with lasting consequences for energy security and regional economies.”