The move, which puts thousands of jobs at risk, has intensified calls for urgent government action to stabilise the sector.

Petrofac applied to the High Court after a key customer, TenneT, terminated a contract for a major energy programme in the Netherlands. The company’s shares were suspended in May following a year of mounting financial difficulties, including a corruption scandal and operational disruptions, which saw its share price fall by over two thirds. While administrators will seek to preserve the business and explore restructuring options, the news has caused significant concern.

Alan Stewart, a partner at MHA in Aberdeen, argues that Petrofac’s situation is symptomatic of deeper issues plaguing the industry. “Fiscal instability, unclear policy and poor project visibility are driving distress across the supply chain,” he said.

Mr Stewart highlighted that the administration will cause “understandable concern” among Petrofac’s North East workforce, in a sector already losing an estimated 1,000 direct and indirect jobs per month, according to Offshore Energies UK (OEUK).

He stressed that while Petrofac had its own long-standing challenges, this event underscores the need for urgent reform of the Energy Profits Levy and the implementation of a “credible long-term transition strategy”.

“Without this,” Mr Stewart warned, “more jobs and investment will leave Aberdeen and beyond – with lasting consequences for energy security and regional economies”.