Maersk Oil says it is planning to shut its Janice floating production unit (FPU) next year and change its offshore rotation system as it looks to reduce costs amid the falling oil price.
About 200 onshore and offshore jobs could be lost as a result of the move, which the firm has gone into consultation over with its staff and the UK's Oil and Gas Authority.
Maersk is the latest firm to signal job losses, since oil prices fell from a high of US$110/bbl last year, to today's close to $40/bbl. Other installations have also been put up for decommissioning, including Fairfield Energy's Dunlin. Recently, the North Sea Producer, a floating production vessel, owned by Maersk FPSOs and Odebrecht, was recently towed into Newcastle after being taken off ConocoPhillip's Maculloch field.
A spokesman for Maersk Oil said: "As a result of ongoing challenges in the market and Maersk Oil's cost transformation process, the UK business has announced consultation on a proposed move to a three weeks on, three weeks off offshore rotation, to be implemented in the second quarter of 2016. The business will also approach the OGA to seek approval to cease production from its Janice installation in the second or third quarter of 2016, moving the business from three operational asset areas to two.
"All options will be explored through consultation to minimize impact on positions, but it is possible that an estimated 200 onshore and offshore roles may be affected as a result of the proposals outlined today. This is a very unsettling period for colleagues. The business will offer as much support throughout the process as possible and remain focused on maintaining safe and reliable operations."
The Janice FPU (pictured) produces about 7000 b/d from three North Sea oilfields.
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