Geotechnical, survey, subsea and geosciences services provider, Fugro, has announced further job cuts and a disposal of its subsea services business in Asia Pacific.
According to the company’s half-year 2016 report, measures already taken to adjust to lower activity levels and to counter price pressure include personnel reduction by 585, while the ongoing restructuring is expected to result in a total headcount reduction of at least 1,000 in 2016.
Including last year’s reduction of 1,577, personnel has by now been reduced by more than 15% in total and by around 35% in the businesses most exposed to the oil and gas market.
Fugro added that during the first half of 2016 the company’s active fleet was reduced by five vessels and that during remainder of the year, more reductions would be made as needed.
Asia-Pac business disposal
In addition, Fugro said on Thursday that the company signed with Shelf Subsea an agreement under which Shelf Subsea will acquire the Fugro subsea services business in Asia Pacific for approximately EUR 14 million ($15.58M) cash and a significant issuance of around 25% equity in Shelf Subsea to Fugro.
Fugro explained this move as a step in its strategy to focus on its core survey and geotechnical business.
The Shelf Subsea business was formed in 2015 by private equity investors SCF Partners, Viburnum Funds and senior management. It operates from offices in Perth and Singapore.
All Fugro subsea staff in Asia Pacific will transfer to Shelf Subsea and the Regional Director Asia Pacific for Fugro’s Subsea Services division, Colin McGinnis, will become the Chief Executive Officer of Shelf Subsea.
As part of the transaction, Fugro will become an approximately 25% shareholder in Shelf Subsea. The transaction also encompasses a service agreement for Fugro survey and the provision of other Fugro services to Shelf Subsea.
Revenue in 2015 of Fugro’s Asia Pacific subsea services business was EUR 142 million.
The transaction involves the transfer of 3 vessel charter contracts, 1 owned vessel, 18 remotely operated vehicles and 285 Fugro employees located in offices in Perth and Singapore.
Fugro stated that the transaction will be closed within the coming months.
Offshore Energy Today Staff