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Windfall tax forcing more job cuts at Apache

Windfall tax forcing more job cuts at Apache

 

APACHE is making nearly 100 more job cuts, just months after the Energy Profits Levy (EPL) forced them to stop North Sea drilling.

Consultation has begun on the cuts with voluntary redundancies being offered up as the company look to “streamline business in Aberdeen”.

In June, Apache blamed their decision to cut 30 jobs on the “increasingly costly and burdensome tax and regulatory regime” in the UK.

The company added: “We allocate capital based on the best possible returns. Given the business climate for the oil and gas industry in the UK, these assets have become less competitive in comparison to the rest of our portfolio.”

North Sea drilling was immediately suspended, including on the Beryl and Forties platforms.

However, the focus of the latest round of cuts is on the onshore side of the business, with a maximum of 90 staff potentially facing job losses.

According to the Press and Journal, the company stressed that it was just “one speculative scenario”.

A spokesperson for the US-headquartered company said: “Following the decision in June to suspend all platform drilling in the North Sea, due to the challenging UK fiscal regime and unstable investment climate, we have since completed a comprehensive assessment of our North Sea business.

“We are focusing on safely managing base production, controlling costs and optimising operational efficiency. This will help ensure a viable and sustainable business for the future as we evolve our assets to late life operations.

“To streamline the business in Aberdeen we are entering a consultation process, which will include a voluntary redundancy programme, to align the onshore organisation with the current business needs.”

The spokesperson added: “Implementing a late-life operating model will ensure Apache North Sea’s sustained success as the business becomes a cost-effective leader in late-life asset management, driven by talent and innovation.”

Read the latest issue of the OGV Energy magazine HERE

Published: 08-11-2023

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