Aker axes 650 jobs fol­low­ing oil mar­ket slow­down

The Herald - - NEWS -

AN oil firm has blamed the con­tin­ued slow­down in North Sea oil pro­duc­tion for its de­ci­sion to axe 650 jobs, in­clud­ing 100 in Aberdeen and Lon­don.

Norwegian sup­plier Aker So­lu­tions has an­nounced it is also cut­ting posts in Nor­way and In­dia af­ter what it de­scribed as a “mar­ket slow­down”.

It came the day af­ter ex­perts pre­dicted that in­vest­ment in the re­gion will fall 30 per cent, about £2.6 bil­lion this year, al­though there have been re­cent rises in the price of oil.

A spokesman said: “Aker So­lu­tions to­day in­formed em­ploy­ees of the need to re­duce the com­pany’s work­force ca­pac­ity.

“About 650 po­si­tions, mainly in Nor­way, the UK and In­dia, may be af­fected.

“The ad­just­ments are be­ing made be­cause of the con­tin­ued mar­ket slow­down and as part of a global re­or­gan­i­sa­tion that will strengthen the com­pany’s com­pet­i­tive­ness.”

The North Sea oil and gas in­dus­try has seen wide­spread job losses since oil prices col­lapsed more than 18 months ago.

More than 65,000 peo­ple as­so­ci­ated with the in­dus­try have been put out of work since Brent crude tum­bled from a high of more than $110 a bar­rel in June 2014.

In­dus­try body Oil and Gas UK has said up to 120,000 jobs linked to the UK sec­tor could be lost by the end of the year due to the cur­rent mar­ket con­di­tions.

On Wed­nes­day, management con­sul­tants Wood Macken­zie said to­tal spend­ing by firms will re­main un­der pres­sure in the North Sea bar­ring a dra­matic in­crease in ex­plo­ration ac­tiv­ity and fur­ther cost cut­ting moves.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.