Energy Voice | BREAKING: Repsol Sinopec to cut 70 Aberdeen jobs

Repsol Sinopec Resources UK (RSRUK) said today that it would make 70 employees redundant in Aberdeen.

The North Sea oil producer said changes to the way it manages offshore assets had led to the decision.

RSRUK is one of several oil companies to have revealed plans for job losses in recent weeks.

Total intends to let go of about 300 workers in the north-east following its takeover of Maersk Oil. Meanwhile, BP, ConocoPhillips and Petrofac have all announced redundancy plans which could impact the region.

RSRUK said its job losses would only impact onshore staff members at its base in Holburn Street, Aberdeen.

RSRUK said it had made “huge progress” in the last three years and had moved into the upper half of the Oil and Gas Authority’s production efficiency rankings.

But the company said it still had more to do to reduce lifting costs.

It previously packaged its North Sea assets into five separate operational groups, but investment in technology means it will be able to cut that down to three.

In September, the business said it would axe 80 offshore positions due to lower activity levels and the completion of a number of major projects.

RSRUK’s spokesman said today: “We are integrating our assets around digital operating hubs, which we have piloted very successfully on Montrose and Arbroath over the last 12 months, to support faster and more informed decision-making. We will also capitalise on our improved internal capabilities and processes.

“As a result of this we are beginning a consultation today on a proposed new design for our onshore organisation. Subject to the outcome of this consultation we expect the number of staff positions will be reduced by around 70.

“We are very aware of our responsibilities to our people and will consider any measures to mitigate the impact on those affected by the reductions, including looking to redeploy staff where possible.”

RSRUK is jointly owned by Repsol (51%) and Chinese firm Sinopec Group (49%) following the Spanish energy giant’s acquisition of the global assets of Talisman Energy in 2015.

It has interests in 52 fields on the UK continental shelf with 11 offshore installations and two onshore terminals.

The firm – formerly Talisman Sinopec Energy UK − achieved first oil from the Montrose Area Redevelopment (MAR) in May 2017.

The sub-£2billion project is expected to unlock up to 100million boe of additional reserves.

RSRUK recorded pre-tax losses of £1.1billion in 2016, compared to a deficit of £635million in 2015.

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