Subsea services company CIE Well Control announced more Aberdeen job cuts as it enters into administration with KPMG, as a result of lessening activity.
Despite working on a series of projects with clients, the company did not have enough resources to fulfil the contracts and was forced to lay off 21 of its 23 workers.
“Due to limited funds available and uncertainty concerning CIE’s ability to complete the contracts, it has been necessary to implement 21 redundancies,” a statement read.
Aberdeen Job Cuts Affect 90% of Workforce
“The remaining two employees of CIE have been retained to assist the Joint Administrators to realise the company’s assets and to help market the business and assets for sale”.
At the request of the company’s directors, Blair Nimmo and Geoff Jacobs of KPGM have been appointed Joint Administrators on 19 August.
CIE Well Control provided a range of offshore support services, including subsea and surface equipment
“Our appointment today is yet another example of a business in the sector which has been negatively impacted by the low oil price and the consequent reduction in upstream activity resulting in cash flow challenges,” KPMG Joint Administrator and UK Head of Restructuring Blair Nimmo, said.
CIE Well Control Hit by Oil & Gas Cost Cuts
According to the administrator’s statement sent in by KPMG this week, CIE started suffering from a downfall in client orders last year as a result of cost cuts by operators and reductions in expenditure.
With the reduction of work available, margins were reduced as competitors forced lower prices, which resulted in the depletion of cash resources available.
“We will be contacting the Company’s customers and will do everything we can to seek a buyer who may be able to protect the Company. We would encourage any party who has an interest in acquiring the company’s business and its assets to contact us as soon as possible. CIE has a strong reputation in its markets together with an asset base which will be of interest to a number of parties, principally comprising its forward order book with a blue chip client base and a variety of machinery in addition to Intellectual Property,” the Joint Administrator stated further.