Petrofac, the UK-based engineering and construction services provider, has been temporarily barred from participating in new oil and gas tenders in Kuwait, according to industry sources familiar with the decision.
The suspension — locally known as being “Q-listed” — was issued earlier this month by Kuwait Petroleum Corporation (KPC), the state-owned national oil company.
The move follows Petrofac’s announcement that it has applied to appoint administrators, a development that has raised concerns about the company’s financial stability and the future of thousands of jobs, according to MEED
Industry sources say the decision reflects a cautious stance rather than a judgment on Petrofac’s performance.
One source said senior KPC officials view the situation as “too uncertain,” adding, “KPC wants to wait and see what happens with Petrofac’s ongoing restructuring. It would be unwise to award more contracts or accept bids until the company demonstrates greater stability.”
Another source stressed that the temporary ban is procedural rather than punitive: “Kuwait has paused new tender participation for Petrofac while the restructuring is under way. This isn’t unusual in the market and relates to the process itself, not to performance or capability.”
Petrofac declined to comment when contacted.
The tender suspension comes as the company proceeds with a major restructuring effort. On November 25, this year, Petrofac announced plans to appoint administrators for its subsidiary Petrofac International Limited (PIL), which previously oversaw engineering and construction operations across the Middle East and North Africa.
In its statement, Petrofac said PIL will request a letter of assistance from the Royal Court of Jersey under section 426 of the UK Insolvency Act 1986, allowing the High Court in England and Wales to appoint administrators.
The company noted that PIL currently holds no active contracts in the MENA region, and efforts are under way to redeploy the subsidiary’s 120 employees to other parts of the group “wherever possible.”
Petrofac said the administration of PIL is intended to support the wider group’s restructuring, preserve value, and facilitate ongoing merger and acquisition (M&A) discussions with creditors.
Despite the turbulence, Petrofac maintains that it is moving forward with options to stabilize the company through alternative restructuring and potential asset sales.
