Petrofac has begun issuing immediate termination notices and releasing employees from their notice periods after the loss of a major 2GW offshore wind contract pushed the group into administration, according to internal communications seen by Arabian Business.
An internal email sent to several staff this week says the company has undergone “significant business changes” and that affected employees will not be required to serve the remainder of their notice periods. The communication states their last working day is effective immediately. Multiple employees received similar notices, according to people familiar with the matter.
Petrofac told Arabian Business that project delivery in the UAE “continues as normal,” and said it is focused on “preserving value, operational capability and ongoing delivery across the Group’s operating and trading entities while options are being advanced to underpin their long-term future.”
The company said the early-release notices were issued to staff whose roles were linked to the terminated 2GW Dutch-German offshore wind programme.
“We recognise this is a challenging time for our people and we remain in close coordination with them and the Ministry of Human Resources and Emiratisation,” the statement added.
Petrofac entered administration in late October after Dutch grid operator TenneT terminated the company’s scope on a two-gigawatt offshore transmission programme. Court filings show the contract accounted for more than 80 per cent of revenue in Petrofac’s engineering and construction division. Its termination removed the core element of the company’s restructuring plan and led lenders to withdraw support.
The holding company sought protection in the UK High Court and was subsequently delisted from the London Stock Exchange. Operating subsidiaries continue trading while administrators review the group’s options. Petrofac has disputed TenneT’s grounds for termination but has acknowledged that the decision accelerated its insolvency.
Separate HR emails sent this week, also reviewed by Arabian Business, outline immediate offboarding steps for staff, including returning IT equipment, clearing desks, handing back access cards and updating personal contact details on internal systems. The messages say November salary will be paid up to the 19th, with deposits due by the 21st. They also state that medical insurance will remain active for up to three months and that Petrofac will make efforts to keep visas active for the same period.
Petrofac remains active in the Gulf, one of its largest markets. MEED Projects data shows the company holds around $6 billion of ongoing work in the Middle East and North Africa, including about $2.9 billion in the United Arab Emirates. In 2025, Petrofac secured several ADNOC Gas awards covering gas development and compressor capacity expansion.
Industry sources have said regional project owners have begun contingency planning, including reviewing guarantees and assessing whether scopes can be shifted to joint-venture partners or other EPC contractors. State-backed spending in the region remains strong, reducing the risk of cancellations but increasing the focus on schedule continuity.
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