Shell has announced staff reductions in Norway. According to Shell, this will include 120 permanent positions and 140 contractors and consultants positions.
In the spring of 2014, A/S Norske Shell started a systematic effort to strengthen its competitiveness and adapt to future activities through cost reductions and organizational changes, Shell said.
Shell’s Norwegian producing fields are facing declining production in the years to come. In addition, a number of major projects are either completed or about to be completed, without new correspondingly large projects planned in the foreseeable future. Falling oil prices have reinforced the need for changes, the company explains.
Over the past year, a number of measures have been implemented to reduce cost, Shell said. In February 2015, Shell’s employees in Norway were informed that cost reductions will also require a reduction in the number of employees. Yesterday, April 23, 2015, staff were informed that the reduction includes approximately 120 permanent positions.
Around 100 of these positions are located in Norske Shell’s headquarters in Stavanger, and approximately 20 are located in the operations department in Kristiansund.
In addition, the number of contractors and consultants will be reduced by approximately 140 positions in Stavanger, Kristiansund and at Nyhamna. The upstream business of Shell in Norway currently counts approximately 900 Shell employees and 350 contractors.
Shell says that redundancies will be solved with voluntary schemes like severance packages and early retirement.
“These measures are necessary to adapt our organization to the level of activity we see in the coming years, and to strengthen our competitiveness. We still adhere to our long-term ambition in Norway, and believe in future growth through pursuing new opportunities on the Norwegian shelf,” said managing director of Norske Shell, Tor Arnesen.
Shell UK also recently announced plans to reduce the number of staff and agency contractors who support the company’s UK North Sea operations.
The Boards of Shell and BG recently announced that they have reached agreement on the terms of a recommended combination. The company says that this is a separate process, and has not affected the reduction decision announced by A/S Norske Shell yesterday.