The boss of Chevron’s upstream operations in Europe says hefty job cuts in Aberdeen are essential for keeping the US oil giant competitive.
Craig May, who was appointed to his Granite City-based managing director role just last year, told the Press and Journal yesterday the decision to shed about 225 roles was not one Chevron took lightly.
But there was no other option if Chevron was to keep up with rivals as producers try to raise North Sea output in the face of spiralling costs, he added.
Mr May was speaking the day after it was revealed Chevron was planning the job cuts after carrying out a review of its business in Europe’s energy capital.
He insisted the move would help and not hinder Chevron’s plans for a £6billion development, Rosebank, west of Shetland and other key North Sea projects.
“This is to ensure we remain competitive for the longer term,” he said, adding: “We need to make these changes now.
“I am very aware of the impact on people and we have looked at this hard. As unpleasant as it is, we have got to make these changes to remain competitive.”
Mr May said the company was doing all it could to minimise redundancies, including helping workers find new roles within the group’s operations globally.
Aberdeen North Labour MP Frank Doran said the job losses were not a surprise, given the fast-rising production costs facing North Sea oil and gas producers.
He added: “As we all know there is a skills shortage, so most of the people affected should be able to find other jobs.
“Even so, it is still a difficult time for all those involved.”
Unite union regional organiser Tommy Campbell said it was a “sad situation”, given the industry was supposedly booming.
“This is not good news for the workers and their families,” Mr Campbell said, adding the union would pressure Chevron and politicians to help those made redundant find new work.
A Scottish Government spokeswoman said: “This will be a difficult time for the workers who are affected by this announcement and their families.
“The Scottish Government will work closely with Chevron and with those who face redundancy to help them into alternative employment through our PACE (partnership action for continuing employment) initiative.
“We hope that the number of redundancies can be reduced through restructuring and relocation.”
She added: “We welcome Chevron’s continuing commitment to the North Sea and there is no indication that this will impact directly on North Sea production or field development.”
Chevron, whose Aberdeen-based North Sea operations employ about 1,100 people on and offshore among a 64,500-strong global workforce, said employees, contractors and expatriate-workers would be affected by its job cull.
It said the cuts were needed to allow it to “more effectively and efficiently” support its North Sea operations.
These include ambitious plans for Rosebank, which Chevron put on hold last November because of concerns about rising costs.
