The settlement allowed the company to avoid further legal proceedings, according to MarketPower. The fine was imposed for supplying sanctioned industrial goods to entities linked to Russia, as well as for providing technical support for these products during the period of winding down its business in Russia (2022–2023).
Before leaving the Russian market, Petrofac had been operating in the country for more than 15 years. The bulk of its work was for Sakhalin Energy, which served as the operator of the Sakhalin-2 project. In 2006, the oilfield services company launched a specialized training and technical center on Sakhalin to train personnel in the oil and gas sector.
The company entered into a so-called “compound settlement” agreement with HMRC. This mechanism involves the payment of a specific amount and allows the investigation to be concluded without taking the case to court.
A Petrofac spokesperson stated that the company’s cooperation with the authorities and the measures taken after the violation was identified were taken into account when determining the settlement amount.
The company did not disclose any further details regarding the circumstances of the case in the statement.
A Series of Problems
Petrofac is engaged in the design, construction, and management of energy facilities, including oil and gas infrastructure, refining plants, and renewable energy projects.
The company operates in the Middle East, the United Kingdom, and other regions.
For Petrofac, the agreement with HMRC comes on the heels of a difficult period for the business.
The company faced financial difficulties following issues with a major renewable energy contract in the Netherlands and entered administration in October of last year.
As part of the restructuring, the Asset Solutions division was acquired by CB&I, which helped save thousands of jobs. Petrofac also sold its engineering and construction business in the United Arab Emirates.
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