BP cuts 300 N. Sea oil jobs in Aberdeen

BP Aberdeen officeUPDATE: 11.15am 15 Jan 2015

Oil giant BP today confirmed that it is to cut a total of 300 jobs in Aberdeen following a review of its N. Sea operations – which first started 50 years ago.

This figure comprises 200 staff jobs from its Aberdeen office and 100 offshore contractors. The company expects a ‘relatively small’ number of compulsory redundancies.

BP currently employs 3,500 people in the North Sea, with a further 11,000 elsewhere in the UK.

The oil giant announced a major restructuring in December in response to the fall in the world oil price, which has halved in recent months.

Trevor Garlick, regional president for BP North Sea, said: “We are committed to the North Sea and see a long term future for our business here.

“However, given the well-documented challenges of operating in this maturing region and in toughening market conditions, we are taking specific steps to ensure our business remains competitive and robust, and we are aligning with the wider industry.

“Whilst our primary focus will be on improving efficiencies and on simplifying the way we work, an inevitable outcome of this will be an impact on headcount and we expect a reduction of around 200 staff and 100 contractor roles.

“We have spoken to staff and will work with those affected over the coming months.”

Also today in Scottish Energy News at: http://goo.gl/hEUysJ

N. Sea operators must cut costs to survive, warns Deloitte

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BBC economics editor Robert Peston, commented:

BP’s announcement about job losses in Aberdeen is being made because it does not expect the oil price to bounce any time soon.

The oil price has dropped around 60% since June 2014 to $48 a barrel, and I understand that BP expects that it will stay in the range of $50 to $60 for two to three years.

Although no oil company has a crystal ball, this matters – especially since it has a big impact on its investment and staffing ambitions.

So plans that it had already initiated to reduce costs have taken on a new element, namely postponement of investments in new capacity that have not been started, and shelving of plans to extend the life of older fields where residual oil is more expensive to extract.

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