Repsol Resources is looking to cut around 95 onshore workers based at its Aberdeen office, Energy Voice understands, following Sinopec’s exit from the North Sea joint-venture.
It comes six months after Sinopec exited the UK business in November following a lengthy arbitration with Spain’s Repsol, which ultimately resulted in a $2.1bn deal to buy out Sinopec’s stake.
A source close to the matter told Energy Voice nearly 100 people are expected to be cut from the organisation.
When asked about the rumoured job cuts, a Repsol UK spokeswoman told Energy Voice: “We can confirm we are reviewing Repsol UK’s onshore organisational structure and operating model, following Repsol’s acquisition of Sinopec’s share in the UK business in November 2023.”
© Ryan Duff/DCT MediaNews of job cuts comes months after Repsol UK shared it will be offering up work valued at over €700 million, or £599.43 m, over the course of 2024.
More than £350 million of what’s being offered up is in decommissioning from the UK business, and just over £274m in operational activities.
Repsol did not comment on how its looming redundancies will impact North Sea plans but did reiterate that all of the at-risk jobs are onshore positions.
A Repsol Resources UK spokeswoman added: “There will be organisational changes, but we aim to keep disruption to a minimum and remain focussed on the delivery of our corporate strategy and business plan.
“As always, we prioritise the health, safety and well-being of our people and the safety of our operations.”
Although unions are not involved, John Boland regional officer for Unite said: “Repsol made me aware that there is a consultation that has started for onshore staff.”
He added: “We do not have recognition for Repsol onshore staff, but obviously any proposed reduction has an overall impact and is concerning.”
Repsol takes over UK business from Chinese partner
Repsol bought out Sinopec’s share in the UK business to bring a years-long dispute to an end.
Kicking off in 2015, Sinopec launched proceedings over the price paid by its subsidiary (Addax) for 49% of the business arguing the $1.5bn price was too high.
The Chinese firm wanted further compensation to cover “any additional investment” and “loss of opportunity”.
Eventually, the conditions of the deal were satisfied on 9 October last year and Repsol announced it would be taking over Sinopec’s 49% stake in November.
Following the deal, Repsol became 100% owner of the UK business.
Repsol Resources UK has interests in 48 fields in the UK North Sea, of which it operates 38.
© Ryan Duff/DCT MediaSince this deal, the firm has laid out plans to progress its North Cayley development.
The firm aims to mobilise a “heavy duty jack up” rig at North Cayley in the first quarter of 2025 with first gas expected in the third quarter that year.
North Cayley is part of the phased Montrose redevelopment on the western edge of the Forties Montrose High area and an extension of the main Cayley field which came online in 2017.
Following rig mobilisation at the start of next year, Repsol forecasts first gas from North Cayley in the third quarter of 2025 which will be tied back to the Montrose platform.
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