More jobs in the North Sea are to be axed after oil giant Petrofac’s announcement that it is to axe up to 160 further jobs in the latest blow to hit the industry. These cuts come despite oil and gas production rising by around 7-8% in 2015 – the first rise in the sector for more than 15 years.
Regardless of the rise in production, the job losses are attributed to continuing low oil prices, now at just over $30 per barrel. Continuing falls in oil prices have resulted in almost 6,000 job cuts in the region in 2015, and Petrofac is only one company in a long list of oil firms to announce redundancies in the North Sea.
A statement on the Petrofac website from Bill Dunnet, Managing Director, Offshore Projects, said: “We’re committed to the North Sea, the region and to our many long-term customers and through the experience and knowledge held within our Aberdeen-based teams we will continue to have a positive impact on their futures.”
The company, which employs 1,900 in the UK, said this strategic move to streamline its business will make the company more competitive in the face of the challenges currently affecting the oil industry.
It is not yet known where the bulk of the jobs will be lost: “Under our current proposals the positions potentially at risk represent less than 10 per cent of our entire UK population and will be spread across our operating centres,” the spokesperson added.
A consultation with the workforce is expected to end later this month.