AN Aberdeen-based subsea equipment business has gone bust amid the fall out from the plunge in the oil price with the loss of 20 jobs.

X-Subsea UK Holding Ltd, and its UK-based subsidiaries, have been placed in administration. Iain Fraser and Tom MacLennan of FRP Advisory have been appointed joint administrators.

Mr Fraser described X-Subsea as the market leader in the design and supply of highly sophisticated excavation and dredging equipment with a blue chip client base.

However, he added:"The business has been badly affected by the current downturn in the oil and gas sector, and despite restructuring of the group earlier this year, income and cash flow has fallen substantially, with administration of the UK businesses being the only option."

The problems suffered by the business will stoke fears the fall in the crude price will take a heavy toll on the oil services sector, as firms cut exploration and production work.

FRP said X-Subsea's parent company, Norwegian based Reef Subsea AS, was placed in Norwegian insolvency proceedings in early February. X-Subsea had historically been reliant on support from its parent, added FRP.

The administrators will try to sell the UK businesses and assets.

Six employees based overseas have been retained to complete a contract. The 20 Aberdeen-based staff have been made redundant.

The UK companies have subsidiary operations in the USA, Mexico and Singapore, which are not in administration.