BP cuts look to hit a further 4,000 offshore oil and gas jobs, and associated upstream support roles as the company struggles with the continued oil slump.
The UK based oil and gas supermajor announced the news Tuesday January 12th, during a ‘town hall’ meeting at the company’s offices in Aberdeen, held by BP’s North Sea President Mark Thomas.
The cuts will be made from across BP’s global upstream exploration and production operations, reducing the amount of staff the company currently employes in such roles, from 24,000 to below 20,000.
During the Aberdeen meeting Mr Thomas told staff that, around 600 of the 4,000 job losses would be coming from within the UK, with the majority being made during 2016.
Mr Thomas said: “we expect a reduction of around 600 staff and agency contractor roles by the end of 2017, with the majority of these taking place this year.”
Adding “We are speaking to our staff and agency contractor management and will work with those affected over the coming months.”
BP North Sea
During Tuesday’s meeting BP stated that the company has to continue to drastically adapt to the dramatic collapse of the global oil price- currently standing at 70% of its peak just over a 12 months ago.
On the Mr Thomas said: “given the well-documented challenges of operating in this maturing region and in toughening market conditions, we need to take specific steps to ensure our business remains competitive and robust.
“An inevitable outcome of this will be an impact on headcount”
However BP has committed to continue investing heavily in the UK sector, with around US$4 billion (£2.7bn) being outlined for upstream investment over the course of 2016, much of which will be going towards the West of Shetland Quad 204 field development.
Further town halls are now expected to be held by BP management at the company’s other major locations, in order to give workers details on the planned job cuts.
We will update as news filters through from BP HQ.