Offshore drilling contractor Atwood Oceanics has approved a new four-year enterprise bargaining agreement (EBA) for offshore employees of its Australian operating subsidiary.
Atwood said on Wednesday that, among other provisions, the EBA provided clarity on working conditions for the company’s Australian offshore employees and “resets wage levels to better align with current offshore drilling industry market conditions.”
The company added that the EBA would take effect upon the expiry of the nominal term of the current EBA on November 24. The new deal needs to be approved by the Australian Fair Work Commission, anticipated to occur in September.
Rob Saltiel, president and CEO of Atwood Oceanics, said: “We are very pleased that our Australian offshore employees have ratified the new EBA. This is an agreement which has been developed after constructive negotiations with the employees directly affected, as occurred with our previous EBAs.
“Through the application of cost reduction initiatives and innovative approaches to offshore employment, this agreement will reduce offshore personnel costs by more than 19 percent in its first year and will allow Atwood Oceanics to provide our clients in Australia superior drilling services at more competitive day rates over the next years.”
To remind, Ensco and Atwood Oceanics recently agreed to merge, with Ensco acquiring Atwood in an all-stock transaction, subject to certain conditions and approval from both sets of shareholders. Both companies said they would hold their respective shareholder meetings related to the merger on October 5, 2017.