KCA Deutag to cut 230 North Sea jobs

Offshore drilling operator also proposes 5% salary cut in a bid to protect as many jobs as possible

Aberdeen-based offshore drilling operator KCA Deutag has announced plans to cut 230 North Sea jobs amid declining oil prices.

The company said 30 onshore support positions would go in Aberdeen with a further 200 offshore positions lost as a result of two clients pausing drilling operations.

KCA Deutag has also proposed a 5% salary reduction to employees "to maintain competitiveness while protecting as many jobs as possible".

The operator said up to 500 positions worldwide are at risk.

KCA Deutag said: "The group's performance in the year to December 31 2014 was strong. However, it became evident in the second half of the year that the declining oil price would have an impact in 2015 as companies across the industry reviewed their cost bases.

"To prepare for this the management team initiated a review of the group to ensure that it is well placed to adapt to the current market and retain its leading position in the drilling and engineering sectors."

The company said it plans to relocate its two offices in Altens to one site in the City South business park in 2016.

BP, ConocoPhillips, Talisman Sinopec, Shell, Chevron and Schlumberger have all announced job cuts in recent months.