KCA Deutag: 500 jobs at risk

Headcounts keep reducing in the oilfield services sector. This time, it is KCA Deutag. The company, a provider of drilling and engineering services, plans to lay off up to five hundred workers, 230 of which in the UK North Sea sector.

In a statement sent to Offshore Energy Today, KCA Deutag has explained the company is preparing for what is expected to be a challenging year for the industry overall, due to the declining oil price.

The global oilfield services industry is facing tough times ahead, as its main clients, the oil companies, are reducing expenditure due to the oil prices plunge. Yesterday, Halliburton and FMC Technologies said they would let go thousands of workers; Halliburton 6400; FMC Technologies 2000. Earlier, the world’s largest oilfield services provider Schlumberger said it would lay off 9000 employees, while its smaller competitor Baker Hughes announced 7000 people will have to leave.

500 at risk

KCA Deutag has said that around five hundred positions are at risk of which: 30 onshore support positions in Aberdeen; 200 offshore positions in the North Sea.

Explaining the expected North Sea job cuts, the company has said that the reason was that its two clients were pulling a brake on their drilling operations. KCA Deutag did not reveal who the clients were.

Furthermore, the drilling services provider has proposed to cut employees salaries 5% „to maintain competitiveness while protecting as many jobs as possible“

There will be some roles at risk of redundancy, but where we can redeploy staff we will.

Norrie McKay, KCA Deutag CEO said: “KCA Deutag continued its growth in 2014 and maintaining this forward momentum will be challenging in 2015 in this new oil price environment. As a result we commenced the review of our operations to reduce our cost base in line with expected levels of drilling activity.”

“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. Our organisation here in Aberdeen plays a key role in managing our global operations and I am pleased to confirm that in 2016 we will be relocating our two offices in Altens to one site in Dandara’s City South Office Park. To coincide with this, our warehouse will relocate to North Badentoy. These new premises will offer our staff an excellent working environment, whilst enabling us to rationalise our existing property portfolio in a cost effective way.”

Offshore Energy Today Staff