Thousands of Scottish jobs at risk as oil giant Petrofac files for administration

The company announced on Monday that it was exploring options to restructure the business with its key creditors.

Administrators will also discuss a potential merger or acquisition with company management as they work to "preserve value, operational capability and ongoing delivery".

Bosses are hopeful a buyer can be found quickly for its North Sea operations, with one source suggesting a deal could be sealed within the coming days.

Energy Secretary Ed Miliband and other ministers have been briefed on the situation by advisory firm, Kroll, who will keep officials informed on the company's unfolding crisis.

Petrofac was founded in Texas in 1981 and designs, constructs and operates offshore equipment for energy companies.

According to a recent stock exchange filling, it employs about 7,300 people globally and is valued at more than £6 billion.

But the company has been struggling with debt recently after facing a Serious Fraud Office investigation in 2021, which resulted in a conviction for failing to prevent bribery, and penalty fines totalling millions of pounds.

Financial restructuring proposals have been discussed by the business's top brass for more than a year.

In May, the High Court sanctioned a formal restructuring plan to write off as much of the debt as possible and inject new cash into the business.

This was subsequently overturned, prompting talks with creditors about a revised agreement.