Thousands of North Sea oil jobs have been saved in a win for the UK economy after a major firm nearly fell into administration earlier this year.
Texas-based energy firm CB&I revealed on Christmas Eve that it has struck a deal to purchase Petrofac’s asset solutions division, safeguarding thousands of North Sea positions.
The acquisition will see approximately 3,000 employees transferred to the American company’s workforce once the transaction concludes.
It is understood that the deal’s completion is anticipated during the opening quarter of 2026.
Thousands of North Sea oil jobs have been saved
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PAThe announcement brings welcome news for workers in the sector, with the deal set to preserve roles across Petrofac’s asset solutions operations.
CB&I’s move comes as the energy services industry faces ongoing uncertainty, making the job security provided by this agreement particularly significant for affected staff.
Petrofac entered administration in October after a renewables contract in the Netherlands fell through.
However, the Department for Energy Security and Net Zero has stressed that the company’s UK operations remain unaffected by the wider corporate difficulties.
Ed Miliband’s department is conducting the consulation | PA
At the time, a DESNZ spokesperson stated: “The UK arm of Petrofac has not entered administration and is continuing to operate as normal, as an in-demand business with a highly skilled workforce and many successful contracts.”
The department attributed the administration to “longstanding issues in their global business” rather than problems with British operations.
Mark Butts, president and chief executive of CB&I, expressed enthusiasm about the strategic fit between the two organisations following this latest merger.
“Our organisations share similar management philosophies and industry-leading safety performance,” he said.
The Texas-based executive highlighted several advantages stemming from the transaction.
“With this combination we see strong cultural alignment, diversification benefits, and clear opportunities to enhance performance and deliver stable cash flow generation,” Mr Butts added.
He emphasised that the acquisition aligns with the company’s broader ambitions.
“These factors collectively support CB&I’s long-term growth objectives,” Mr Butts shared.
A major North Sea oil giant fell into administration earlier this year
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GETTY / PAThe deal represents a significant expansion of CB&I’s presence in the North Sea energy sector. James Bennett, joint administrator for Petrofac, described the outcome in positive terms.
“Following a swift and rigorous process to find the best home for Petrofac’s Asset Solutions business, this is a very positive outcome and secures the future of its operations and the roles of many highly skilled people,” he said.
Mr Bennett noted that the division has “an exciting future as part of CB&I, with strong operational compatibility and a complementary geographic footprint.”
Petrofac group chief executive Tareq Kawash echoed this sentiment, calling it “a great outcome for the Asset Solutions business, supporting job security for 3,000 talented team members.”