Job losses continue across North East oil and gas industry supply chain

A CHC helicopter
A CHC helicopter

By DARA BUTTERFIELD

Further job losses have been announced across the oil and gas industry, with cuts ranging from manufacturing to transport.

GE Oil and Gas, a Peterhead oil and gas industry firm that makes components, has announced plans to cut jobs. The company employs about 130 people in the town and has launched a formal consultation.

A statement from the firm read: “As a result of increasingly challenging market conditions, we are announcing proposals to implement workforce reductions at GE’s Pressure Control supply chain facility in Peterhead.

“We believe that it is the right approach for the long-term health of the business.”

Canadian helicopter  company CHC has announced that about 50 jobs at now are at risk at its Aberdeen airport base. The company employs around 450 people in the UK, and the company said a consultation process with staff and unions has been started.

The news comes after Bristow Helicopters said last month it could make 130 of its 1,950 UK staff redundant.

A CHC spokesman said: “The offshore industry continues to face challenging conditions and we, like our customers and competitors, have had to keep our resourcing requirements under regular review.

“While we have worked diligently to address market conditions without affecting our wider workforce in Aberdeen, unfortunately we are unable to continue to do so.

“We started formal consultation discussions with affected employees and their trade union representatives. In the region of 50 positions may be affected at our Aberdeen base.

“We continue to work to reduce costs, strengthen our balance sheet and partner with our customers to provide solutions that result in lower customer costs, while maintaining an absolute commitment to industry-leading safety, availability and reliability.”

Jim McAuslan, General Secretary, pilots union Balpa, said: “This is yet more devastating news.

“The loss of experience is a major threat to the UK economy. It is more important than ever that the governments should commit to helping businesses in the North Sea through this downturn, so skills are not lost when the situation improves.”

LR Senergy has announced 17 north-east job losses. The company has said that it will now be targeting opportunities in regions “less affected” by the low oil price.

The company has been recently awarded 10 contracts worth £4.5million providing a range of services for clients in the Middle East and the Asia Pacific region, but says that it is still committed to the energy industry in the North Sea.

Steve Gilbert, Vice President of Operations, LR Senergy, said: “We continue to have a significant presence in the North Sea and are working to expand into other areas which can be serviced from our hubs in Kuala Lumpur, Dubai and Abu Dhabi.

“While we look forward to consolidating our geographical reach, we remain fully committed to the energy industry in the North Sea and it is very pleasing to have secured two significant projects west of Shetland.”

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