UK North Sea Firms Struggle with Impact of Prolonged Price Drops

Published at 11:10AM - 19/12/14

ConocoPhillips, the US oil giant, has announced that it will be cutting 230 roles from its UK workforce of 1,650. Only this month, it announced that it would be slashing its global Capex budget by 20pc in response to the falling price of oil.

Goldman Sachs has predicted that most big oil companies will need to follow suit and cut their Capex figures by at least 30pc in order to achieve profitable trading at current Brent crude prices.

The hit has also been felt by the wider supply chain, including suppliers to the UKCS. Schlumberger, the American oilfield services firm, has reduced the availability of its geological survey ships to the UK, absorbing a hit of $800 million in the process and cutting a number of jobs as a result.

The Wood Group, based in Aberdeen, has also announced that it will be freezing pay for its employees, as well as reducing contractor rates. Apache, another UKCS key producer, has also announced that it will need to reduce contractor wages by 10pc from 1st January.

Last updated on 11:39AM - 23/12/14