Administrators are on standby this weekend to handle the collapse of Petrofac, the oil and energy services group – an insolvency which could threaten the future of more than 2,000 jobs in Scotland.

Sky News has learnt that directors of Petrofac has lined up Teneo for an administration process which could be confirmed as early as Monday morning.

The company’s board, chaired by former Anglo American finance director Rene Medori, is said to be holding emergency talks this weekend.

One industry executive said a decision to file for administration was likely to be taken before the stock market opens on Monday.

Ed Miliband, the energy secretary, and other ministers have been briefed on the situation, with more than 2,000 Scottish-based jobs potentially at risk.

Kroll, the advisory firm, has been engaged by the Department for Energy Security and Net Zero to work with ministers and officials on the unfolding crisis.

Government sources claimed this weekend that Petrofac’s UK operations were “growing”.

“This government is supporting jobs and investment in Scotland including building a world leading carbon capture industry in the North Sea, alongside our biggest ever investment in offshore wind,” one official said.

A source close to Petrofac said on Saturday that the UK arm of the group had not been beset by any lossmaking contracts and would be in a strong position to secure its future.

The administration process would affect the parent company, Petrofac Limited, which does not directly employ the company’s workforce, they added.

Petrofac’s potential collapse comes at a sensitive time for Mr Miliband, who is coming under enormous pressure to permit more North Sea oil and gas drilling despite Labour’s manifesto commitment not to grant licences on new fields.

Petrofac employs about 7,300 people globally, according to a recent stock exchange filing.

It designs, constructs and operates offshore equipment for energy companies.

The company’s shares have been suspended since April.

Petrofac, which now has a market capitalisation of barely £20m, has been mired in financial trouble for years.

Once-valued at more than £6bn, it has been drowning in a sea of debt, and faced a Serious Fraud Office investigation which resulted in a 2021 conviction for failing to prevent bribery, and the payment of more than $100m in penalties.

In a stock exchange announcement on Thursday, Petrofac said the cancellation of a contract by TenneT, an operator of electricity grids in Europe which is its biggest customer, meant that a solvent restructuring was now not viable.

“Having carefully assessed the impact of TenneT’s decision, the Board has determined that the restructuring, which had last week reached an advanced stage, is no longer deliverable in its current form,” the company said.

“The group is in close and constant dialogue with its key creditors and other stakeholders as it actively pursues alternative options for the group.

“In the meantime, Petrofac remains focused on serving its clients and maintaining operational capability and delivery of services across its businesses.”

Founded in 1981 in Texas, Petrofac has been in talks about a far-reaching financial restructuring for more than a year.

A formal restructuring plan was sanctioned by the High Court in May 2025 with the aim of writing off much of its debt and injecting new equity into the business.

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

If Petrofac does fall into administration, it is expected to be broken up, with some of its assets – including key contracts – likely to be taken over by other industry players.

Petrofac has been contacted for comment.

A DESNZ spokesman declined to comment.

Championship club Sheffield Wednesday have filed for administration, according to a court filing, which will result in the already struggling side being hit with a 12-point deduction.

The South Yorkshire club currently sit bottom of the Championship, the second tier of English football, with just six points from 11 games.

Known as The Owls, Wednesday are one of the oldest surviving clubs in world football, with more than 150 years of history.

Court records confirm the club have filed for administration. A notice was filed at a specialist court at 10.01am.

What has happened?

The Owls, who host Oxford United on Saturday, have been in turmoil for a long time.

On 3 June, owner Dejphon Chansiri, a Thai canned fish magnate who took over the club in 2015, was charged with breaching EFL regulations regarding payment obligations.

Weeks later, Mr Chansiri said he was willing to sell the club in a statement on their official website.

Their crisis deepened just days later when another embargo was imposed on the club relating to payments owed to HMRC, before players and staff were not paid on time on 30 June.

In the months that followed, forwards Josh Windass and Michael Smith left the club by mutual consent. Manager Danny Rohl, now at Rangers, also left by mutual consent.

The Owls were forced to close the 9,255-capacity North Stand at Hillsborough after a Prohibition Notice was issued by Sheffield City Council.

‘Current uncertainty’

On 6 August, the EFL released a statement, saying: “We are clear that the current owner needs either to fund the club to meet its obligations or make good on his commitment to sell to a well-funded party, for fair market value – ending the current uncertainty and impasse.”

On 13 August, the Prohibition Notice was lifted, but a month later, news emerged of a winding-up petition over £1m owed to HMRC.

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Last season, Wednesday finished 12th. They had already been placed under registration embargoes in the last two seasons after being hit by a six-point deduction during the 2020/21 campaign, for breaching profit and sustainability rules.

With a 12-point deduction, the Owls would be 15 points away from safety in the Championship.

Retail sales are at the highest level in more than three years, in the latest measure of the UK economy to confound economists.

The amounts bought in shops rose 0.5% in September, far above the 0.2% contraction anticipated by economists polled by Reuters.

It was the fourth monthly rise in a row and brought volumes to their highest level since July 2022.

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Doing well were computer and telecommunications retailers as the iPhone 17 launched in the month, while online jewellers reported strong demand for gold despite the price hovering around record highs.

Gold has been in demand, and in recent days reached a record high, as some investors moved money out of the US dollar and government bonds amid the ongoing government shutdown.

It came despite a rainy month – which typically keeps shoppers at home – and a five-day tube strike in London.

The impact of the rain could be seen, however, in the boost to online spending, which rose to one of the highest levels since the end of the pandemic.

A fall was recorded in food shop sales from August to September, signalling a response to high food price inflation.

A good week for the economy?

Retail sales figures are significant as they measure household consumption, the largest expenditure in the UK economy.

Growing retail sales can mean economic growth, which the government has repeatedly said is its top priority.

Earlier this week, another key economic measure came in better than expected.

Inflation remained at 3.8% rather than rising to the widely expected 4% – double the target rate set by the interest rate-setters at the Bank of England.

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Consumers were feeling better about their finances, a closely watched measure of consumer confidence showed on Friday.

Buying sentiment is up from last month, according to market research company GFK, as intentions to buy big-ticket items like electrical goods and furniture rose.

Combined, it suggests people are not feeling too gloomy in the run-up to the November budget.