KPMG appointed administrators at latest North Sea casualty

KPMG has been appointed administers of Aberdeen-based subsea and surface engineering company CIE Well Control.

The firm, which has made 21 staff redundant, has become the latest North Sea business to enter administration in the wake of the languishing global oil prices.

KPMG UK restructuring head Blair Nimmo and Scottish restructuring director Geoff Jacobs have been made joint administrators of the design, precision engineering, welding and fabrication services specialist.

The company, which has been unable to complete ongoing projects for clients, has suffered as oil and gas operators have cut costs in the wake of the oil-price slump.

In a statement, KPMG said: “With the reduction in the volume of work available, margins were continually squeezed as competitors forced pricing downwards.

“This resulted in cash resources being depleted and ultimately required the directors to seek the appointment of administrators.”

Mr Nimmo said that CIE was “yet another example of a business in the sector which has been negatively impacted by the low oil price and the consequent reduction in upstream activity resulting in cashflow challenges”.

Two employees have been retained to help the administrators wind up the business and market its assets.

“We are currently working with retained staff to realise all assets, and will provide all employees affected by redundancies with appropriate guidance and support,” said Mr Nimmo.

“We will be contacting the company’s customers and will do everything we can to seek a buyer who may be able to protect the company. We would encourage any party who has an interest in acquiring the company’s business and its assets to contact us.

“CIE has a strong reputation in its markets together with an asset base which will be of interest to a number of parties, principally comprising its forward order book with a blue-chip client base and a variety of machinery in addition to intellectual property.”