Maersk Drilling revealed Friday that it has taken steps to initiate consultations with trade unions and employee representatives about redundancies in the company’s offshore crew pool in Denmark, Norway and the UK.
The company said it expects the consultations will lead to a total of between 250 to 300 redundancies in the North Sea crew pool. The individual consultation processes will follow varying timelines in compliance with local regulations in Denmark, Norway and the UK, Maersk Drilling highlighted.
Maersk Drilling outlined that the Covid-19 pandemic and lower oil price environment are impacting offshore drilling activity and noted that some tenders and projects are being delayed or cancelled “which adversely affects commercial prospects”.
The business said it intends to stack a number of its North Sea rigs “in light of the current commercial outlook”, which is the reason for the initiation of consultations, it outlined.
“Though it’s standard practice in our industry to adjust our workforce to activity levels, it never feels right to say goodbye to good colleagues, especially when so many have walked the extra mile to keep operations running in these very difficult circumstances,” Maersk Drilling CEO Jorn Madsen said in a company statement.
“However, it’s our responsibility to safeguard our business and we are now taking steps to maintain competitiveness in the challenging market environment,” Madsen added.
Maersk Drilling revealed recently that it had received notice of early termination of two drilling contracts, one with a Shell subsidiary and another with Aker BP. Last month, the company received a notification from Tullow Ghana Ltd of early termination of the drilling contract for the drillship Maersk Venturer.
Maersk Drilling describes itself as a global leader in harsh environment and deepwater drilling. The business employed approximately 2,850 people in 2019, according to its latest annual report.
To contact the author, email andreas.exarheas@rigzone.com
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