UK-based Wood Group is reportedly planning to cut as many as 300 office jobs in the North Sea.
According to the Telegraph, the company expects to start talks with 1,000 UK-based onshore employees next week and plans to cut 300 jobs from its North Sea operations.
The company is also currently in talks with union representative to reduce offshore worker pay for the third time in about two years, the paper added.
Wood Group has not disclosed any information about the potential job cuts.
Just a day after news of the cuts was reported, Wood Group PSN won a three-year contract extending its support of Shell’s eight UK Continental Shelf offshore assets.
The two one-year extension options included in the contract will allow the company to retain more than 500 jobs.
Those two options are effective immediately, Wood Group PSN said.
As part of the contract, Wood Group PSN will continue to deliver maintenance and construction services to the Shearwater, Gannet, Nelson, Curlew, Brent Delta, Brent Alpha, Brent Bravo and Brent Charlie installations.
WGPSN will also provide engineering modifications to the Brent Alpha, Brent Bravo and Brent Charlie platforms.
“This contract safeguards long-term employment opportunities for our employees on these assets, and builds on Wood Group’s 40 year history working in partnership with Shell in the North Sea,” Wood Group PSN’s managing director for the UK and Africa James Crawford said.
Neither Wood Group PSN nor its parent company have disclosed if the contract win will impact the firm’s job cut plans.
According to the Courier, Wood Group employees about 6,200 people in its UK onshore operations.
Wood Group was also awarded a five-year contract by Nexen Energy at the end of April valued at $150 million.
The contract extends a contract that has been in place since April 2010.
Wood Group PSN will continue to deliver operations, maintenance and technical support across Nexen’s North Sea offshore assets: the Buzzard, Scott and Golden Eagle platforms.
More than 190 jobs are retained under the contract and the contract is effective immediately, the company said.