BP confirms 300 job cuts

Announcement fuels union fears of additional oil industry job losses

BP has confirmed hundreds of job losses in the wake of the dramatic fall in oil prices at a briefing held at its North Sea headquarters in Aberdeen.

The firm said it expects to shed 200 staff, while 100 contractors' posts will also be cut. BP said the job cuts are onshore roles, not offshore operations.

Energy secretary Ed Davey is to continue conducting talks with industry leaders at BP's Aberdeen HQ to address the challenges the North Sea industry faces. Davey said he was meeting industry chiefs to see what could be done to maintain jobs in the sector and help anyone being laid off.

"We want to do everything we can to minimise any impact. The North Sea is crucial to Britain's energy industry and is a vital part of our economy."

However, unions fear the grim news from BP is the first in a series of announcements from oil firms as a result of falling prices. 

Trevor Garlick, regional president for BP North Sea, said: "We are committed to the North Sea and see a long- term future for our business here. However, given the well-documented challenges of operating in this maturing region and in toughening market conditions, we are taking specific steps to ensure our business remains competitive and robust, and we are aligning with the wider industry.

l work with those affected over the coming months."

Mick Cash, general secretary of the Rail, Maritime and Transport (RMT) union, said: "The announcement from BP is a devastating blow to hundreds of workers in the UK energy industry and we are being warned that there is much worse to come.

"RMT believes that the industry is making offshore workers carry the can for their failure to plan for lean times such as these. Instead they have gone for a short-term slash-and-burn approach that will have long-term implications for the future of the entire industry and the security of the UK's energy supplies.

"RMT, along with our sister unions, is meeting with Oil and Gas UK tomorrow, where we will be pushing for a halt to the job cuts programme and an emergency package of measures to stave off the destruction of both jobs and infrastructure.

"We are also continuing to lobby politicians for incentives to allow exploration, maintenance, safety and engineering development works to take place during this emergency period for the industry."

BP has warned that plans to streamline its business will cost it £638 million over the next year. The restructuring bill will reflect the need to downsize its operations following £27.5 billion worth of divestments since the Gulf of Mexico disaster in 2010.

The move to simplify the business comes with the price of oil at around $65 (£42) a barrel, some 40% below its level earlier last year. 

Shell and Tullow Oil have also begun scaling back their investments worldwide, with Tullow Oil hinting at the prospect of job losses expected to be announced following its full-year results in February.

"We do not want decisions made on the hoof that could have long-term implications."