Sector News

Leading oil drilling firm plans to cut 230 jobs across North Sea

February 12, 2015
A leading North Sea drilling firm plans to cut 230 jobs, STV News has learned.
KCA Deutag intends to axe 30 onshore positions in Aberdeen and 200 across the wider North Sea. The Aberdeen-based company also plans to reduce pay by 5%.
On Wednesday, US firms Halliburton and FMC Technologies announced worldwide job cuts which are expected to impact the North Sea.
Talisman Sinopec, BP, Shell, Chevron, Schlumberger and ConocoPhillips have all announced staff reductions recent months amid a slump in the value of oil.
KCA Deutag chief executive Norrie McKay said: “We have proposed a 5% reduction in staff salaries to enable us to retain as many talented people in our business as possible to ensure we are well placed when market conditions improve.
“Our priority has been to minimise additional job losses. There will be some roles at risk of redundancy, but where we can redeploy staff we will.
“In 2015 our focus will be on delivering operational excellence for our clients and continuing to improve our business despite the oil price.”
The value of a barrel of Brent crude oil has more than halved since June last year. But the price has recovered slightly from a five-year low of $48 in January.
Mr McKay added: “While the oil industry is facing challenging times, we believe in its long term future and the ongoing success of KCA Deutag.
“I am pleased to confirm that in 2016 we will be relocating our two offices in Altens to one site in Dandara’s City South Office Park.
“To coincide with this, our warehouse will relocate to Badentoy. These new premises will offer our staff an excellent working environment, while enabling us to rationalise our existing property portfolio in a cost effective way.”
KCA Deutag has entered a consultation with staff over the proposed cost-cutting measures.
By Chris Foote 

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