N. Sea operators announce more oil and gas job cuts – with 5,000 jobs already lost in past year

North Sea oil workers helmetsBy DARA BUTTERFIELD

Further job cuts have been announced in the the oil and gas sector – in addition to  Scot-Government estimates that 5,000 jobs have already been lost in the past 12 months.

Universal Pegasus International (UPI) – owned by US conglomerate Huntington Ingalls Industries  – Ceona, and Bibby Offshore have all announced job cuts, although they have not yet confirmed how many will be lost.  

This comes as Oil and Gas UK estimates that more than 5,000 jobs have been lost in the sector since the drop in oil price they have warned that the figure is likely to increase.

A spokeswoman for HII said: “Due to the downturn in the oil and gas sector, HII has taken some actions to better position Universal Pegasus for long-term success.

“These difficult but necessary actions include a workforce reduction and a restructuring of UPI’s benefit and compensation programmes.

“While none of us can predict when the market will turn, UPI will be positioned to provide our customer base with high-quality products and services to help them complete their projects safely, on schedule, and on budget.”

Ceona, a prominent offshore services provider, has confirmed it has been forced to cut jobs in order to remain competitive in the current market.

Mark Preece, Chief Executive, Ceona, said: “In order to ensure that Ceona continues to operate a robust, competitive business against the challenging market conditions, we are reviewing our operations across all our offices.

“Regrettably, part of this process involves reviewing our staffing levels to better align with current market conditions.

“The process is at a very early stage and we are working closely with our colleagues to try and reach the best outcome possible during what is extremely difficult time for everyone involved.”

Bibby Offshore is currently consulting with their employees at their office in Westhill about redundancies and have said that they “will be helping all affected people as much as we can throughout this process”.

There are also  speculative local reports that Aberdeen-based Helix Well Ops is also considering reducing its payroll, while oil and gas explorer EnQuest has just announced the sale of their new Aberdeen HQ to raise £50 million for the cash strapped company.

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