• STV
  • MySTV

Oil giant Shell to cut 475 jobs from North Sea workforce

The announcement on Wednesday comes as part of a £47bn merger with the BG Group.

Shell: Plans to cut 475 jobs in BG merger (file pic).
Shell: Plans to cut 475 jobs in BG merger (file pic). © HEMEDIA / SWNS Group

Dutch oil giant Shell plans to cut nearly 500 jobs from its North Sea workforce.

The announcement on Wednesday came as the result of a £47bn merger with the BG Group.

All 475 jobs are expected to be lost by the end of the year, mostly from Shell's Aberdeen headquarters.

Another 4500 posts will be shed worldwide.

It is believed to be one of the largest single announcements of North Sea job losses in recent years.

UK and Ireland Shell vice-president Paul Goodfellow said: "We're continuing the improvement journey we've been on to create a competitive and sustainable business in the North Sea.

"Despite the improvements that we have made to our business, current market conditions remain challenging.

"Our integration with BG provides an opportunity to accelerate our performance in this 'lower for longer' environment.

"We need to reduce our cost base, improve production efficiency and have an organisation that best fits our combined portfolio and business plans.

"As a result, we will reduce the size of the organisation supporting our UK and Ireland Upstream business by around 475 people. We will look to implement the majority of this change during 2016.

"Following these changes, Shell will still remain a key employer in the north east of Scotland with around 1700 employees."

Unite warned that if the current rate of jobs losses in the oil and gas sector continues, there will be no viable North Sea oil industry within a decade.

Regional officer John Boland said: "We have very real fears that Shell cannot continue to operate safely offshore if it keeps shedding the workers tasked with ensuring our oil industry is safe and sustainable.

"The Oil and Gas Confederation (OGC), of which we are members, has called time and again for an oil and gas sector summit to be convened urgently.

"So far the call has fallen on deaf ears but both the Scottish and Westminster governments must wake up to what is happening to this vital sector.

"They cannot stand by while a vital industry's demise takes place on their watch."

Shell expects to have cut 12,500 jobs globally since the start of 2015 by the end of the year.

http://stv.tv/news/north/316437-oil-and-gas-giant-shell-to-buy-exploration-firm-bg-group-for-47bn/ | default

One account. All of STV.

This field is required. That doesn't look like a valid e-mail format, please check. That e-mail's already in our system. Please try again.
ShowHide
Forgot password?
This field is required. This must be at least 6 characters long. Did you enter your details correctly?
If you've forgotten your details then use the 'Forgot password?' link.
Need to reset your password?

We'll send a link to reset your password to

We've sent you details on how to reset your password

Please check your email and follow the instructions.

Forgotten your email address?

Have you forgotten the email address that you previously joined with? Don't worry, by emailing enquiries@stv.tv we can help.

One account. All of STV.

This field is required. Please enter at least 2 characters
This field is required. Please enter at least 2 characters
This must be at least 6 characters long.
ShowHide
This field is required. This must be at least 6 characters long.
You must be over 16 to join STV.
This field is required. This doesn't appear to be a valid date
We need this to check that you live in an STV region.
This field is required. This doesn't appear to be a valid postcode
Would you like us to email you about our great shows and services from time to time?
We'll only send emails we think you'll like (see example) based on information you have supplied and shows you have watched on STV Player. For details on emails and advertising, see our STV & You page.
Would you like to receive emails from the Scottish Children's Lottery about draws, instant games and competitions?
We support the Scottish Children's Lottery (SCL), which is managed by our colleagues at STV ELM Ltd. You can find out more about the SCL on its website, including its Privacy Policy.

By continuing you agree to our Terms of Use, and understand our Privacy and Cookie Policies.

Upload Profile Picture

Please make sure your image is under 2mb in size and a valid JPG, PNG or GIF.

Are you sure?

Unfortunately, you'll be unable to access our premium content. We’ll be sorry to see you go, but if you change your mind you can rejoin us at any time.

Please verify your STV account

Please verify your STV account using the email we sent you. If you have lost the email, we can send you another one, just click the button below.

Thanks

We've sent you a new verification email.
Please check your email and follow the instructions to verify your account.

Welcome to STV
Thanks for joining us.

Oops!

Sorry, you must be at least 12 years old to place a vote for your Real Hero.

Please review our Voting Terms of Use for more information.

Oops!

Sorry! It seems that you are using a browser that is incompatible with our voting service.

To register your vote please copy the below URL in to your regular mobile browser. We recommend Google Chrome, or Safari.

http://shows.stv.tv/real-heroes/voting

Oops!

Sorry, you seem to have already voted in this category.

Thanks for voting

Now share your vote with friends on your social network

Share on twitter Share on facebook

Cast your vote

Please register or sign in to continue.

Cast your vote

This field is required. This doesn't appear to be a valid date

Cast your vote

Please fill out this form to cast your vote. As you are under 16 years old you will not create an STV account. Why do we need these details?

This field is required. Please enter at least 2 characters
This field is required. Please enter at least 2 characters
This field is required. That doesn't look like a valid e-mail format, please check.
Location This field is required.
Parental Consent This field is required.

That's you. All that's left is to click the 'Submit Vote' button below. By doing so, you confirm that you and your parent or guardian have read and accept our Voting Terms of Use, Privacy Policy and Cookie policy, and that the details you have entered are correct. We'll look after them as carefully as if they were our own.