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2015-03-29 15:05:00

SHELL CUTTING 250 JOBS

SHELL CUTTING 250 JOBS

Royal Dutch Shell will reportedly cut at least 250 more jobs this year at its UK North Sea operations.

"Shell UK plans to reduce the number of staff and agency contractors who support the company's UK North Sea operations by at least 250 in 2015," Shell said Thursday.

The cuts are in addition to 250 layoffs announced in August.

The units expected to be hit by the headcount reduction have not been disclosed yet.

In August Shell said it would layoff 250 employees at its onshore North Sea oil operations in Scotland as part of a company wide cost cutting strategy.

The company employees about 4,500 employees and 1,000 service contractors at its upstream operations in Scotland as of 2014.

In the UK region of the North Sea, Shell produces more than 12 percent of the UK's oil and gas on behalf of Shell and its partners.

High operational costs and dwindling reserves have been putting pressure on UK North Sea projects.

Wood Mackenzie estimates that by 2030 nearly $9 billion in tax relief will be claimed for decommissioning costs in Scottish fields.

The long term production decline will be temporarily alleviated with a 30,000 barrels of oil equivalent per day hike in 2018 production will dip below 1 million boepd by 2023, a report issued by Wood Mackenzie said.

Earlier this year Shell said it will cut $15 billion in global spending over the next three years as it prepares for prolonged oil price weakness.

The plan will include cancelling and shelving some projects through 2017 although the company has not disclosed the projects that will be affected by the cuts.

"We are taking a prudent approach here and we must be careful not to over-react to the recent fall in oil prices," Shell CEO Ben van Beurden said when the plan was announced.

petroglobalnews.com

Tags: SHELL, UK, OIL, GAS, PRICES

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