Former chief executive of BP, Lord Browne, said oil companies will have to adapt their business models to new oil prices. He also placed a greater emphasis on reducing carbon dioxide emissions in order to survive. In a speech to the City earlier this week, Lord Browne said oil majors must “look at their balance sheets” and decide how best to generate value.
Energy Minister Fergus Ewing has admitted he is worried that North Sea oil fields could be decommissioned prematurely. He told MSPs at Holyrood yesterday that the UK Government needed to bring forward substantial tax reduction measures in the budget next month to persuade companies not to pull out of the UK continental shelf too early. Mr Ewing spoke out as Scottish Labour leader Jim Murphy last night claimed there was potential to create thousands of new jobs in the north-east through decommissioning oil fields.
Staff have been taken off the Ninian Central platform following a suspected drinking water contamination. The platform, which is operated by CNR International, is 249miles from Aberdeen. There are 192 personnel onboard the Ninian platform.
Ministers have refused planning consent for a wind farm in Dumfries and Galloway that would have an “unacceptable” impact on the landscape. Sandy Knowe Wind Farm limited had applied for permission to build 30 turbines with a capacity of up to 90mw to the south-west of Kirkconnel and Kelloholm. Scottish Natural Heritage had raised serious concerns about the cumulative impact the development would have on the landscape and views in the Upper Nithsdale area.
A leading offshore firm has unveiled plans to build a supply base at a historic north-east airstrip. Aberdeen-based Independent Oilfield Service (IOS) wants to upgrade its pipe yard at Longside Airfield to a fully-fledged offshore supply base. It would have several large warehouses, separate office buildings and space for outside storage.
There is no “silver bullet” answer to the problems facing the North Sea as oil prices remain at around half the level they were last year, the boss of Wood Group has said. But Bob Keiller, the chief executive of Wood Group PSN, pointed to the “higher cost culture” in the North Sea basin as one area that will need adjusted in order to ensure that jobs in the region remained sustainable. His firm Wood Group was among the first to cut the rates it paid to independent contractors last year - not once but twice.
The Aberdeen Harbour Board’s newly-appointed chairman has said he expects his new role to be “challenging and exciting” and pledged his support for the port’s expansion plans. Incoming chairman Alastair Mackenzie, a former regional director at risk management group Achilles, takes over from Chris Lloyd, who was chairman for the previous four years and a member of the board for six years in total.
Nicola Sturgeon and the Scottish Cabinet spoke yesterday of the importance of protecting the north-east's oil and gas “success story" at a question and answer evening in Aberdeen. Following a day visiting various businesses around the north-east and cutting the first sod of the long-awaited Aberdeen Western Peripheral Route, the first minister and her Cabinet invited questions from the public . Speaking to a crowd of hundreds at the Music Hall, Ms Sturgeon highlighted the importance of the oil and gas industry and how the Scottish Government is dealing with the crisis.
A North Sea employers’ body has dismissed a possible strike threat by unions as “premature”. Talks between the Unite and GMB unions and the Offshore Contractors Association (OCA), which represents employers, broke down last Friday over proposed changes to rotations and holiday entitlement. About 2,500 contractors will now be balloted on a range of responses which could even result in them downing tools. Bill Murray, chief executive for the OCA, said the North Sea was going through “a challenging time” and savings were needed until the oil price picks up again.
Wood Group will reduce costs by more than $30million this year in light of the declining oil price. The company said it will keep a tight rein on costs and apply "tougher filters" to potential acquisitions. Despite the reduction in costs, Wood Group's revenue rose 7.8% to $7.6billion and profit after tax also saw a boost from $300.5million the previous year to $336.3million.
Apache North Sea boss Jim House insists the UK oil and gas industry still has a bright future but he has also joined the growing clamour for Chancellor George Osborne to usher in new tax breaks. Mr House, region vice-president and managing director at Apache North Sea (ANS), told the Press and Journal yesterday there was “no better time” than now to radically overhaul a fiscal regime which was not helping oil and gas firms. The current system is not fit for purpose, he said, adding that the industry itself also needed to change following the sharp slump in oil prices.
North sea oil workers could be set to down tools as unions move to ballot over possible strike action following changes to working conditions. Unite and GMB union members of the Offshore Contractor Association (OCA) will vote on whether to take industrial action after talks with industry bosses in London broke down on Friday. Contractors refused to negotiate over shift pattern changes from two weeks on/three weeks off to three weeks on/three weeks off and cuts to pension payments, sick pay and holiday leave.
Oil giant Total plans to sell North Sea assets and may consider Aberdeen job cuts unless prices rise and taxes are cut. Chief Executive Patrick Pouyanne said the firm was not proposing upstream redundancies, but that it was slashing UK investment, and may "need less staff" if it continues. He was speaking to journalists in London after the Paris-based company announced its net adjusted profit fell 17% to $2.8 billion in the quarter, compared with the same period a year ago.
BP’s former chief executive Lord Browne has called on ministers to scrap a supplementary tax on North Sea oil and gas revenues. Lord Browne warned the plunge in oil prices had done “permanent damage” to the mature fields in the region. He warned that while the North Sea was still producing plenty of oil and gas, the price decline meant “we are now seeing the late evening of the North Sea.” Chancellor of the Exchequer George Osborne has been urged by the oil and gas industry to use next month’s budget to roll back the 30% levy.
A north-east MP has said a “compulsory” jobs scheme is needed to protect young workers in the region during the North Sea downturn. Dame Anne Begg, the Aberdeen South MP, highlighted concerns about the oil price drop during a debate in the Commons yesterday. Labour want an initiative where anyone under 25 who has been receiving Jobseekers Allowance for a year, and anyone over 25 who has been receiving it for two years, would be offered a paid job or face losing benefits.
A Spanish takeover of Talisman Energy and its 50% stake in a struggling UK joint venture is “on track” to complete during the first half of 2015. Talisman insisted yesterday the £5.3billion deal struck with Spain’s Repsol in December was unaffected by hefty losses in the North Sea as oil prices nose-dived last year. The Canadian company said its UK partnership with China’s Sinopec suffered net losses of £622million in the fourth quarter of 2014 and £692million over the whole of last year as a result of lower oil prices and higher decommissioning and development cost estimates. Its final quarter figure included after-tax write-downs totalling £416million for Talisman’s share alone and resulted in a £122million funding charge in the Calgary-based company’s 2014 results.
Ashtead Technology, which celebrates 30 years in business this year, has won a new contract with FUGRO. The company made the announcement as Subsea Expo kicks off in Aberdeen for three days. The award means Ashtead will be a preferred supplier of subsea rental equipment and associated services around the world.
A key oil and gas industry asset which has operated in the north-east for nearly 30 years has just been sold in a deal potentially worth £4.5million. Marine service group James Fisher and Sons said yesterday it had bought the National Hyperbaric Centre (NHC) in Ashgrove Road West, Aberdeen. The facility was previously owned and run by managing director David Smith, who took it over in 2005, together with business partner Tom Brannan, with the aim of creating a worldwide centre of expertise.
Forum Energy Technologies has launched its latest generation subsea robotic system at Subsea Expo. The company, which is the world’s largest manufacturer of underwater remotely operated vehicles (ROVs), has created the XLX- C ROV. It is more compact than the highly successful XLX model, but with similar capabilities.
The North Sea is facing a potential economic triple-whammy and may need to make “complex and difficult” changes in light of the plummeting price of oil, a new report has warned. The sector is in a “painful situation” as a result of low oil prices being “sustained for longer than anticipated”, the PwC report said. The authors warned that continued falling prices could lead to less investment, culminating in accelerated decommissioning at oil fields. The report argued there could still be long-term opportunities for the UK’s oil and gas industry, but added that companies would need to “transform the way they operate to meet the challenge”.
Inspection, maintenance and repair specialist N-Sea has launched its third diving support vessel. The Edradour represents a £1.5million investment for the company and will be utilised in the company’s IMR operations in the North Sea, as well as in Holland and Germany.
Leading oil industry figure Sir Ian Wood has warned six billion barrels of oil reserves could be lost unless radical measures are taken by the UK Government. According to reports, he said a third of what remains under the seabed - estimated to be worth around £200billion - could be abandoned. Sir Ian's comments come ahead of the budget with industry leaders calling for significant changes to take hold to its current fiscal regime.
Statoil has found more resources in the Krafla area of the North Sea in Norwegian waters . The company, along with PL035 partners, said the main Tarbert appraisal well and the small oil discovery in the Krafla North prospect in December has increased the “robustness” of the field development project. Statoil has completed a two-well programme in the Krafla area which is located 25kilometres southwest of Oseberg South in the North Sea.
Offshore standby vessel operator Atlantic Offshore Rescue (AOR) has appointed a new managing director. Matthew Gordon joined the Aberdeen company at the start of the year and replaces John Bryce, who gives up the helm after playing a key role in the firm’s recent growth. Mr Bryce will continue to be involved in AOR in a consultancy capacity, the company said.
Emergency services have been called to Aberdeen International Airport due to fears for an incoming helicopter. The Bristow EC225 Super Puma aircraft was due in at around 10.05am and has triggered a response from police, fire and rescue and ambulance teams. There were 19 passengers on-board the aircraft along with two crew members.