Sector News

Energy Voice: Baker Hughes to close Aberdeen base

October 20, 2016
News

Baker Hughes has put one of its Aberdeen premises up for sale.

The company last night confirmed it was looking to close and consolidate its North Sea onshore facilities.

The US oilfield services firm’s building at Aberdeen Innovation Park in the city’s Bridge of Don area is now on the market.

It comes after the company revealed at least 30 staff would be left vying for just five positions at one of its other premises in Europe’s oil capital.

A spokeswoman said Baker Hughes was “simplifying” its structure and operational footprint globally.

The company also has two other premises nearby in Bridge of Don and the Stoneywood area of the city.

It comes amid a prolonged downturn in the worldwide oil and gas industry.

Baker Hughes said last night it would continue to maintain its level of technical capabilities in the North Sea region.

It’s understood Dril-Quip, which is owned by Schlumberger, also sold one of its buildings in the Bridge of Don region earlier this year to Thistle Windows.

The Baker Hughes building has been described as a modern office and laboratory building with simulator bay and is 1709.4 sq.m (18398 sq.ft)

Speaking from their Houston headquarters, a spokeswoman said:“Faced with challenging industry conditions in the North Sea and elsewhere, Baker Hughes is simplifying its organizational structure and operational footprint globally, including closing and consolidating facilities in Aberdeen.

“The company is working with employees for relocation opportunities. Baker Hughes will maintain its level of technical capabilities in the region and will continue to deliver excellent service quality to customers.

“These actions will help to improve cost efficiencies and help to ensure the longevity of the region.”

The plan for the firm to sell of at least one of its buildings is in stark contrast to the announcement yesterday by the UK’s Oil and Gas Authority (OGA) which said the North Sea is on the verge of a “whole new lease of life” – thanks to hundreds of small pools of oil.

The offshore industry’s watchdog believes up to three billion barrels could be unlocked from previously unexploited discoveries.

Baker Hughes isn’t the only firm looking to shed some of its square footage in the Granite City.

Energy Voice previously revealed Subsea 7 is still looking to lease out its West Campus building in Aberdeenshire.

The company said in October last year it would be downsizing its Aberdeenshire office as it looked to streamline costs during the oil price decline.

Instead, the firm said it would “optimise” its other buildings.

The Oslo-listed company does not own the West Campus building, but had been leasing it out.

A sign offering the leased spaced can be seen outside of its current premises.

By Niamh Burns

Source: Energy Voice

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