Based in Portlethen, just outside Aberdeen, OEM Group (Scotland) Ltd was founded in 2012 and provided rental services of drilling products and engine services to the oil & gas, marine and renewables sectors.

The business, which previously employed 12 people, is no longer actively trading after cash flow pressures. Most employees had been made redundant shortly prior to the joint administrators’ appointment.

Five jobs are being retained for an orderly closure of the engine services division of the business and to allow a sale of the rentals business. The rentals business remains operational for the off-hire of equipment whilst the joint administrators seek buyers for its specialist rental fleet of offshore drilling tools.

Mr Bathgate said: “Following significant cash flow problems which the business could not overcome, OEM Group has unfortunately been placed into Administration and we are now seeking a sale of the rental fleet and to realise assets for the benefit of creditors.

“We invite any parties interested to get in touch as quickly as possible.”