‘Tens of thousands’ North Sea jobs at risk

A union has warned that “tens of thousands” of offshore jobs could be at risk as North Sea firms buckle under the pressure of the ongoing oil price “crisis”.

RMT said the combination of the coronavirus pandemic and oil price “wars” could drive the UK industry “over the cliff edge”, and called for “immediate government intervention” to protect workers.

The union has called for a series of actions, including for the Oil and Gas Authority (OGA) to “take ownership” of offshore installations in the event of an operator going out of business.

It also asked for a standard two week on, three week-off (2:3) offshore rota being imposed across every North Sea installation to sustain employment levels, as well as offshore employees being given “key worker” status.

Other demands included a call for government-funded unemployment and sick pay schemes for workers impacted by the virus.

It echoes a report from industry body Oil and Gas UK (OGUK) published yesterday, calling for a “Covid-19 resilience package” to protect jobs and businesses creaking under the weight of low crude prices.

The pandemic, coupled with failed supply cut talks between major producing nations such as Saudi Arabia and Russia, has driven the price of Brent crude down this week to its lowest level since 2003.

Meanwhile several operators have been reducing manning levels on their offshore assets to prevent the spread of the outbreak.

RMT general secretary Mick Cash said they are “extremely worried” about the “double-edged crisis” which could not only damage jobs and conditions but also North Sea production, increasing the UK’s reliance on imported fossil fuels.

He said: “We are hearing that exploration projects on the UKCS are being delayed or cancelled as oil and gas prices plummet to unsustainable levels. This is threatening to take some operators to the wall, along with the contractor and supply chain workers maintaining their assets.

The union said the industry’s “Vision 2035” plan to transition to net zero emissions, is now in “serious jeopardy”.

RMT general secretary Mick Cash.