Shell to cut more UK offshore staff

Offshore staff

ABERDEEN, UK – Shell UK says it will cut the number of staff and agency contractors supporting its UK North Sea operations by at least 250 this year. This follows a similar reduction in personnel announced by the company last August.

In addition, Shell plans changes to its UK North Sea offshore shift patterns.

It says these measures are part of its global initiative to manage costs and make its operations more competitive.

“The North Sea has been a challenging operating environment for some time,” said Paul Goodfellow, the company’s upstream vice president for the UK and Ireland.

“Reforms to the fiscal regime announced in the [UK’s] budget are a step in the right direction, but the industry must redouble its efforts to tackle costs and improve profitability if the North Sea is to continue to attract investment.

“Current market conditions make it even more important that we ensure our business is competitive. Changes are vital if it is to be sustainable. They will be implemented without compromising our commitment to the safety of our people and the integrity of our assets.”

Shell cited Oil and Gas UK’s analysis that around 20% of UK production is uneconomic at an oil price of $50/bbl.

03/26/2015

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