North east energy giant goes into administration

More than 2,000 North Sea jobs are at risk, as Petrofac goes into administration.

It comes after the Aberdeen firm lost a major contract for offshore wind last week, leadi8ng to the collapse of restructuring talks.

The company, which employs more than 7,000 workers globally, stressed that the administration will affect the group's main holding company.

It will continue to trade and assess options for an alternative restructuring, with different merger and acquisition options also being explored with its key creditors.

Advisers at corporate finance firm Teneo are expected to advise over the administration.

"When appointed, administrators will work alongside executive management to preserve value, operational capability and ongoing delivery across the group's operating and trading entities," the company said.

Petrofac's UK business is based in the Granite City and is involved in the operation of North Sea oil platforms for firms including BP and Shell.

The company was worth around £6 billion at its peak in 2012 but has slumped in recent years.

It was worth around £20 million when its shares were suspended in May after being severely impacted by an investigation by the Serious Fraud Office and volatile energy prices.