Petrofac Facilities Management has agreed to pay a £569,157 fine to UK tax authorities following breaches of sanctions imposed on Russia, becoming the first company publicly named after settling such an enforcement action. The energy services firm reportedly supplied industrial goods and provided related technical assistance to individuals connected to Russia during 2022 and 2023, authorities said.

The company, formerly listed on the FTSE 100, operates and manages infrastructure for oil and gas production, refineries, and renewable projects across regions including the North Sea and the Middle East. Its UK branch, headquartered in Aberdeen, runs oil platforms for clients such as BP and Shell.

HM Revenue and Customs (HMRC) announced that the penalties arose amid Petrofac’s process of winding down its Russian operations. The firm self-reported the sanctions breaches to HMRC and fully cooperated with the investigation, contributing to the agency’s decision to resolve the matter through a compound settlement. This form of settlement, allowed under the Customs and Excise Management Act, enables fines to be agreed without court proceedings when there is sufficient evidence to prosecute.

Officials noted that the case marks a departure in how HMRC handles sanctions enforcement, specifically by publicly naming the company involved. Edwige Hill, deputy director of fraud investigation at HMRC, stated that naming Petrofac aligns the agency with other enforcement partners and underscores the serious consequences of violating sanctions regulations.

The fine follows closely on the heels of a separate legal development involving Petrofac’s UK business. Earlier this year, HMRC withdrew its appeals against a Scottish court ruling that dismissed a claim for over £150 million related to a debt restructuring after the company entered administration. The court decision cleared the way for the sale of Petrofac’s UK operations to CB&I, a US firm, in a transaction completed in April that reportedly preserved around 2,000 jobs in the North Sea sector.

A spokesperson for Petrofac Facilities Management commented that the settlement reflected the company’s cooperation and mitigating measures. The agreement was reached before CB&I finalized its acquisition of the business.

HMRC emphasized that compound settlements are offered only when there is adequate evidence to support prosecution, and that factors such as intent, efforts to breach sanctions, cooperation, and penalties in similar cases are taken into account in deciding their appropriateness.