A trade union has raised concerns that North Sea operator Repsol (BME:REP) could cut up to 2,000 jobs amid a review of its ageing offshore production assets.
The Spanish firm has received numerous warnings and fines from UK regulator over the past year, and the Unite union says it understands the firm is now undertaking a review of its operations.
Unite negotiated a collective bargaining agreement covering 350 offshore workers employed by the firm’s British subsidiary Repsol Resources UK in 2023.
Speaking to Upstream, Unite regional officer John Boland said the union understands Repsol UK is looking to reset as an “end-of-life field operator”.
As a result, Boland said Repsol could make up to 2,000 contractor and employee roles redundant in the process of shifting its focus to decommissioning.
Based in Aberdeen, Repsol operates 38 fields across the UK continental shelf including 11 offshore installations and two onshore terminals.
Its operational assets include the Arbroath, Montrose, Auk and Clyde platforms and the Bleo Holm FPSO.
The operator is also in the process of decommissioning multiple assets, including the Fulmar and Buchan platforms.
Last year, it was reported that Repsol was in talks to merge its UK assets with private equity-backed NEO Energy.
The firm previously operated its UK assets in a joint venture with Chinese operator Sinopec, which ended in 2023.
Since then, Repsol has faced persistent rumours of job cuts at its Aberdeen base.
Repsol decommissioning
Speaking to Energy Voice, Boland said the union is concerned by the potential impact to workers as Repsol transitions to late-life field operations.
Alongside a staffing review, Boland said Repsol has transferred duty holder responsibilities for its Tartan, Saltire and Beatrice assets to Aberdeen’s Three60 Energy.
In addition, Boland said other Repsol installations are “currently not producing due to HSE interventions”.
“Overall employee numbers on Repsol installations are similar to TAQA, where we estimate over 2000 job roles will be lost due to their current decommissioning,” he said.
In response to the redundancy fears, a Repsol UK spokesperson told Energy Voice: “Repsol UK do not comment on speculation.”
Energy Voice understands Repsol maintains a total of 1081 operational staff, including contractors and employees, across its UK operations.
Repsol regulator woes
Repsol has drawn the ire of both the North Sea Transition Authority (NSTA) offshore regulator and the Health and Safety Executive (HSE) in recent months.
In November last year, the NSTA handed Repsol a £350,000 fine for “unreasonable practice” which led to a shut-in at the Flyndre field in 202.
The sanction is the largest ever financial penalty the NSTA has given to an operator.
The NSTA also issued Repsol a £160k fine in December 2023 for breaching offshore emissions rules at its Auk North, Halley and Fulmar installations.
© RepsolMeanwhile, the HSE has also issued several safety notices against Repsol, including an immediate prohibition notice in November.
These include reprimands for failing to secure effective emergency response measures at its Fulmar A platform, including fire safety equipment.
HSE also rebuked Repsol over poor toilet facilities on its Arbroath platform which have been “in desperate need of replacing” since 2020.
Repsol has also attracted criticism over its environmental record.
A report last year listed Repsol among the North Sea operators responsible for the highest volume of oil and chemical spills.
Energy Voice has contacted the Unite union for comment.
