RE: Looks like28 Apr 2020 18:36
Oil and gas firm EnQuest confirmed today that it expects to cut 530 positions in the UK.
EnQuest said it had entered into a six-week consultation with employees following a review of its assets and spending plans.
The London-listed company said it had taken “decisive action” to steer the business through the “challenging economic environment”.
The oil and gas industry has been left reeling by a collapse in crude prices, sparked by a supply glut and a drop in demand brought on by the Covid-19 pandemic.
Earlier today, industry body Oil and Gas UK released a report estimating that 30,000 oil jobs could be lost over the next 12-18 months, mostly in the supply chain.
Large-scale headcount reductions were expected at EnQuest – an exploration and production firm – following its decision not to restart production on two of its North Sea installations, and shut down a third later this year.
EnQuest halted production at Thistle and evacuated 115 crew members from the platform in October after a subsea inspection flagged up a structural fault.
Meanwhile, output from the Heather platform was switched off last year so that compressors could be repaired, but during the operation, a “small” fire broke out and two crew members were flown to hospital.
In November, EnQuest said it hoped to restore Thistle and Heather to production in the first half of 2020.
But last month, the company revealed it had decided not to restart the installations as they would no longer be profitable.
In January, the firm handed in plans to decommission the Alma/Galia fields, served by the EnQuest Producer vessel, less than five years after achieving first oil.
It means EnQuest’s portfolio of UK North Sea operated assets will shrink from seven to four.
Chief executive Amjad Bseisu said earlier this month that EnQuest’s actions would “unfortunately and inevitably” result in fewer staff and contractors.
Today, a source claimed 150 full-time staff members and 380 contractors were being laid off across EnQuest’s Aberdeen office, its offshore installations and Sullom Voe Terminal in Shetland.
A spokeswoman for EnQuest confirmed 530 jobs were likely to be lost, but said a specific breakdown by location would not be possible while the consultation is on-going.
She said: “Given the prevailing low oil price and global demand, the group has reviewed each of its assets and related spending plans.
“As previously announced, the group’s current expectation is for economic production at its Alma/Galia fields to cease in the second half of 2020.
“EnQuest has also stated it no longer plans to restart production at the Heather and Thistle/Deveron fields and recently announced it is targeting £240 million of cost savings in 2020.
“This reduction in operational activity will inevitably lead to resource reductions, although EnQuest is seeking to keep this to a minimum. EnQuest expects to reduce the number of roles by 530.”
She added: “The company expect
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