The administration is on standby this weekend to deal with the collapse of oil and energy services group Petrofac – an insolvency that could threaten the future of more than 2,000 jobs in Scotland.
Sky News has learned that Petrofac's directors have put Teneo in for administrative proceedings, which could be confirmed as early as Monday morning.
The company's board, chaired by former Anglo-American finance director Rene Medori, is scheduled to hold emergency talks this weekend.
An industry executive said the decision to file for bankruptcy would likely be made before the stock market opens on Monday.
Ed Miliband, the energy secretary, and other ministers have been briefed on the situation as more than 2,000 jobs in Scotland are potentially at risk.
Consulting firm Kroll has been appointed by the Department of Energy Security and Net Zero to work with ministers and officials on the emerging crisis.
Government sources claimed this weekend that Petrofac's operations in the UK were “growing”.
“This government is supporting jobs and investment in Scotland, including building a world-leading carbon capture industry in the North Sea, alongside our largest-ever investment in offshore wind energy,” an official said.
A source close to Petrofac said on Saturday that the group's UK arm was not affected by loss-making contracts and was in a strong position to secure its future.
The administration process would impact parent company Petrofac Limited, which does not directly employ the company's workforce, they added.
The potential collapse of Petrofac comes at a sensitive time for Mr Miliband, who is under enormous pressure to allow further oil and gas drilling in the North Sea, despite Labor's manifesto commitment not to license new fields.
According to a recent stock exchange filing, Petrofac employs around 7,300 people worldwide.
It designs, builds and operates offshore equipment for energy companies.
The company's shares have been suspended since April.
Petrofac, which now has a market capitalization of just under £20m, has been in financial trouble for years.
The company, once valued at more than £6 billion, sank into a mountain of debt and faced an investigation by the Serious Fraud Office, which resulted in a 2021 conviction for failing to prevent bribery and paying over $100 million in penalties.
In a stock exchange announcement on Thursday, Petrofac said the termination of a contract by TenneT, an operator of electricity networks in Europe and its largest customer, meant that a solvent restructuring was now no longer viable.
“After careful consideration of the impact of TenneT's decision, the board has concluded that the restructuring, which reached an advanced stage last week, is no longer feasible in its current form,” the company said.
“The group remains in close and ongoing dialogue with its key creditors and other stakeholders as it actively seeks alternative options for the group.”
“In the meantime, Petrofac remains focused on serving its customers and maintaining operational capability and service delivery across all business areas.”
Petrofac, founded in Texas in 1981, has been in discussions about a far-reaching financial restructuring for more than a year.
In May 2025, the Supreme Court approved a formal restructuring plan aimed at writing off much of its debt and injecting new equity into the company.
This was later rescinded, leading to discussions with creditors about a revised agreement.
If Petrofac does indeed fall into bankruptcy, the company will likely be broken up and some of its assets – including key contracts – will likely be taken over by other industry players.
Petrofac has been contacted for comment.
A DESNZ spokesman declined to comment.
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