Apache begins fresh round of North Sea redundancies

Apache has begun consultations on a new round of redundancies within its Aberdeen-based North Sea division.

Following the decision in June^[1] to suspend all platform drilling in the region “due to the challenging UK fiscal regime and unstable investment climate”, the US oil producer underwent a “comprehensive assessment” of the business.

A statement explained that apache is now focusing on safely managing base production, controlling costs and optimising operational efficiency, to ensure a viable business for the future, as it moves assets to late life operations.

“To streamline the business in Aberdeen we are entering a consultation process, which will include a voluntary redundancy programme, to align the onshore organisation with the current business needs,” it added.

Around 30, mostly offshore, roles were cut in the summer, while the latest round will be more of the onshore workforce, based at the Prime Four business park in Kingswells.

A “maximum” of 90 redundancies could be made, although Apache stressed this is just “one speculative scenario”.

Much like other North Sea producers, the company has blamed the UK Government’s energy profits levy – or windfall tax – for making it “very challenging” for it to operate in the same capacity as it has in the past.

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References

1. ^{^} decision in June (www.aberdeenlive.news)
2. ^{^} sign up here for free (www.insider.co.uk)