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Aberdeen job cuts loom as Shell retrenches in North Sea

Aberdeen job cuts loom as Shell retrenches in North Sea

By Mark Williamson : Group Business Correspondent

ROYAL Dutch Shell has announced plans to cut around 330 jobs in its UK North Sea oil and gas business which is run from Aberdeen.

The cuts will reduce total employee numbers in the Anglo-Dutch giant’s North Sea business to around 1,000.

It is understood the bulk of the cuts will affect office-based roles in Aberdeen.

The cuts are being made under a programme initiated by Shell amid the oil price plunge that was triggered by the coronavirus crisis.

The programme will help the oil and gas giant save money. It also forms part of efforts to reshape the group to allow it to play a part in the transition to a lower carbon energy system.

Shell plans to increase investment in areas such as wind and hydrogen power and carbon, capture and storage.

The group has indicated it remains committed to the North Sea.

In October Shell confirmed the UK North Sea was one of the core regions it would focus on under a growth strategy that is expected to see it remain in the upstream oil and gas production business for years.

The group has said the profits it generates from oil and gas production will allow it to make the required investment in low carbon energy sources in support of efforts to slow climate change.

The cuts announced yesterday continue a process of retrenchment in the North Sea that has been underway at Shell for some time.

The process accelerated amid the deep downturn in the North Sea that followed the sharp fall in oil prices between 2014 and 2016.

Shell sold off a raft of North Sea assets and shed hundreds of jobs in the area. In 2016 Shell announced plans to close an accounts centre in Glasgow where around 400 people worked.

The latest North Sea job cuts will be completed over a two- year period. The company is expected to try to minimise compulsory redundancies.

In August Shell announced plans to shed 9,000 jobs globally in support of a simplification programme that it expected to help it save up to $2.5 billion (£1.9bn) annually. The programme was expected to result in a reduction of around 10 per cent in total employee numbers at the group.



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