Hundreds of North Sea oil workers’ jobs are at risk at Rowan Drilling UK.
The Aberdeen company which frequently brings rig maintenance work to Dundee has issued an “at risk notice” to 429 employees.
The workers at Rowan Drilling UK North Sea have also received a second communication notifying them of the start of the redundancy consultation process.
It was first thought that up to 900 jobs could be at risk as each of the company’s three rigs – Rowan Gorilla V, Rowan Gorilla VII and Rowan Stavanger – has crews of up to 300.
Last night a statement from the company’s corporate headquarters in Houston, Texas, confirmed that the actual figure is less then half of the number originally feared.
A company spokesperson said: “Rowan Companies confirms that notices were sent to 429 employees at risk of redundancy.
“As required by law, UK employees were notified of the start of the consultation process. The number of redundancies offshore will depend on our ability to source further contract work for our drilling rigs.”
The “at risk notice” sent to employees states the company is reducing crew levels because of the challenging times facing the oil industry.
Current and future markets for drilling services are severely depressed and there is fierce competition for future prospects.
The “dramatic reduction in the price of oil, coupled with escalating costs, has led to a slow-down in drilling activity.”
Drilling units have been stacked and in some cases scrapped leaving crews without work.
Negotiations have been taking place with customers to keep the Gorilla V and Gorilla VII contracted. The company warned that even if these are successful it is likely both rigs will be subject to a period of inactivity for the latter part of this year before commencing drilling in the early part of 2016.
The Rowan Stavanger is likely to finish its assignment in early June, and there is no firm contracted work despite continued marketing efforts although some promising opportunities later this year.
The letter is signed by Pete Wilson, vice-president of drilling operations in the North Sea, and Lori von Heyking, vice-president of human resources
The company’s move follows similar action by Rigmar which this week confirmed it was cutting jobs from its entire workforce including Dundee because of a slowdown in the industry.
BP has cut 300 jobs from its 3,500 workforce and Wood Group, Chevron and Conoco Philips have taken similar measures.
Arbroath offshore engineering form Axon made 25 of its workforce redundant and industry giant Halliburton, which also has a factory in the Angus town, has warned of jobs cuts
An oil and gas expert has called for tax changes to stimulate activity. Uisdean Vass of Bond Dickinson, last night told an audience of North Sea oil and gas company executives in Aberdeen that the current taxation model for independent offshore infrastructure owners is unfair.
He said independent offshore infrastructure owners should be subject to normal Corporation Tax to help.
“In our view it is unjust that such companies are subject to ring-fenced Corporate Tax and Supplementary Charge even though they never see the upside of a single barrel of crude oil,” he stated.