Drilling Operator To Cut 230 Jobs

Offshore drilling operator KCA Deutag has announced plans to cut 230 North Sea jobs amid declining oil prices.

The company said 30 onshore support positions would go in Aberdeen with a further 200 offshore positions lost as a result of two clients pausing drilling operations.

KCA Deutag has also proposed a 5% salary reduction to employees to maintain competitiveness while protecting as many jobs as possible''.

The operator said up to 500 positions worldwide are at risk. BP, ConocoPhillips, Talisman Sinopec, Shell, Chevron and Schlumberger have all announced job cuts in recent months.

A statement from KCA Deutag said: The group's performance in the year to December 31 2014 was strong. However, it became evident in the second half of the year that the declining oil price would have an impact in 2015 as companies across the industry reviewed their cost bases.

To prepare for this the management team initiated a review of the group to ensure that it is well placed to adapt to the current market and retain its leading position in the drilling and engineering sectors.''

Chief executive Norrie McKay said: We have proposed a 5% reduction in staff salaries to enable us to retain as many talented people in our business as possible to ensure we are well placed when market conditions improve.

Our priority has been to minimise additional job losses. There will be some roles at risk of redundancy, but where we can redeploy staff we will.

In 2015 our focus will be on delivering operational excellence for our clients and continuing to improve our business despite the oil price.

While the oil industry is facing challenging times, we believe in its long term future and the ongoing success of KCA Deutag.''

The Aberdeen-based company said it plans to relocate its two offices in Altens to one site in the City South business park in 2016.