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   Web Issue 3191 July 5 2008   
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Shell axes 180 oil jobs in Aberdeen

Oil giant Shell today announced it is to axe 180 jobs in its North Sea operations.

Staff in Aberdeen were being told of the redundancies this morning by Shell Europe's vice president of exploration Tom Botts.

Shell said the cuts - which affect office-based posts only - will be made over the next three years in order to improve efficiency.

The company currently employs about 2,500 people in Aberdeen.

Last June Shell put part of its North Sea operation up for sale and abandoned plans for a £25 million headquarters in Aberdeen.

The company said today's announcement, which followed a cost and efficiency study, would help to secure its long term competitive future in the UK.

But Graham Tran, regional officer with the Amicus arm of the Unite union, questioned Shell's commitment to the North Sea and its treatment of staff.

He said: "We as a union are totally vindicated in the position we have adopted over the years that Shell is not committed to the North Sea or the UK.

"After its announcement last year to sell off assets in the North Sea, this is becoming an annual event.

"We have spoken to a number of our members this morning, and they are not happy about learning about this at their breakfast tables.

"I want Shell to ensure a robust programme is in place for these people to find employment elsewhere in the North Sea."

Shell said market pressures had led to costs in some areas rising by 50% to 60% in the last three years, and the company had to take steps to remain competitive.

John Gallagher, vice president technical, said: "The organisational changes announced today will better position Shell to focus on our strengths.

"We will bring our advanced technology into play and better deliver competitive projects in the North Sea like the new Caravel and Shamrock developments that we are just bringing on stream."


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Posted by: Anne on 10:55am Wed 23 Apr 08
Shell said the cuts - which affect office-based posts only - will be made over the next three years in order to improve efficiency.
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This is a cheap explanation, please, try again.
Posted by: spagan, heisker, scotland on 1:06pm Wed 23 Apr 08
With oil at $120 - and record profits for Shell and the other oil companies, this is unpalatable.
I don't think any of the Oil companies would shift jobs from the rightful oil capital of Western Europe.
However, whilst the fiscal control base remains in London, this is another aspect of the so-called Union dividend.
Shell could easily 'make efficiencies' in London and shift jobs to Aberdeen.
Roll on the referendum!
Slainte Mhor
Posted by: Graham, Larbert on 1:15pm Wed 23 Apr 08
Shell said the cuts - which affect office-based posts only - will be made over the next three years in order to improve efficiency.


Shell said market pressures had led to costs in some areas rising by 50% to 60% in the last three years, and the company had to take steps to remain competitive.


Well I'm willing to bet that the 180 "Staff" are just about all Professional Engineers, of various disciplines.
I also suspect many will be re-employed PDQ by the "service companies" who work for Shell and others, freelance status.
Sure, some may retire.

Some, however may take their skills abroad (and their money).
I dont blame them if they do!




Posted by: JBlackley, Florida on 1:30pm Wed 23 Apr 08
I wonder what it is that makes union reps say things like, "Shell is not committed to the North Sea or the UK" when Shell is a commercial company where the first (and perhaps only) duty is to maximise profit and dividends for its shareholders?

As for, "they are not happy about learning about this at their breakfast tables." well, where would you rather? Over a latte at midmorning or as they're being tucked in at night?

Fatuous.
Posted by: steve the barge, Glasgow on 3:27pm Wed 23 Apr 08
spagan wrote:
With oil at $120 - and record profits for Shell and the other oil companies, this is unpalatable. I don't think any of the Oil companies would shift jobs from the rightful oil capital of Western Europe. However, whilst the fiscal control base remains in London, this is another aspect of the so-called Union dividend. Shell could easily 'make efficiencies' in London and shift jobs to Aberdeen. Roll on the referendum! Slainte Mhor
Fiscal control is in the Netherlands, but don't let that get in the way of a good old anti Union rant! Most of the oil market and chartering is done in London by most companies, and if AS and Co. want to attract oil companies etc to Furry Boots city, or even retain the ones that are already there, come independance time, this sort of parochial ranting will not help!
Posted by: Stew, Aberdeen on 3:27pm Wed 23 Apr 08
spagan wrote:
With oil at $120 - and record profits for Shell and the other oil companies, this is unpalatable. I don't think any of the Oil companies would shift jobs from the rightful oil capital of Western Europe. However, whilst the fiscal control base remains in London, this is another aspect of the so-called Union dividend. Shell could easily 'make efficiencies' in London and shift jobs to Aberdeen. Roll on the referendum! Slainte Mhor
Silly person. This concerns EP Europe which is based in Aberdeen. Not Shell Trading etc which are in London (and who are also on a cost drive but work in a different environment to EP).
We are a mature province in which the majors will be less active therefore less people required. Most of the positions are empty already as we are working below the numbers we should be and as a previous poster points out most people will walk straight into a job with one of the independents.
Lose the paranoia and people may listen to you more. As for Tran he just isn't very bright.
Posted by: spagan, heisker, scotland on 3:58pm Wed 23 Apr 08
Steve
Not sure if you would recognise one of my 'rants'!
HQ in the Hague, Registered Office in London.
I guess the point I was making was that Aberdeen does not have the 'status' that it undoubtedly would have if we had 'grasped the thistle' in the 60s or 70s.
Where do you think Shell's Head Office is in Canada?
Ottowa - the capital?
Toronto - the largest city and economic hub?
Nope! Think you'll find that it'll be in sunny Alberta - where the oil is!
Course they have their own local taxation in Alberta as well.
Funny what you can do with a bit of creativity!
Ken Livingston or Boris - you wouldn't find them being parachial would you? You wouldn't find them trying to defend London's place?
If Aberdeen (and Scotland) had not been considered a 'remote' outpost - it might have benfitted more - like Calgary has done.

Stew - same goes. Your question should be - "Gosh I wonder why all the important and permanent oil jobs went to and/or stayed in London?"

Perhaps you'll remember some of the Britoil commitments and promises that were made - but never adhered to by Westminster?

Posted by: Stew, Aberdeen on 4:03pm Wed 23 Apr 08
There are few if any technical oil jobs in Shell which are based in London. Go to the Shell Centre and you will find the traders and HR bods but no petroleum engineers. The VP for EP Europe is based in Assen (and he shouldn't be) shall we start slagging off the Dutch?
BP is the same it's ops and engineering top guys are in Aberdeen.
Please realise that the oil industry is more than getting the stuff out the ground and that not everything is a plot by those nasty English.
Posted by: steve the barge, Glasgow on 4:10pm Wed 23 Apr 08
Helmet: My companies registered office is in Guernsey, Operational office is in Denmark.
As for the rest of the post, some of us try and look ahead, not backwards. We learn from History, not live in it.
Posted by: spagan, heisker, scotland on 4:40pm Wed 23 Apr 08
Steve
Should be "My company's registered ......." - but let's not get pedantic. (Did nobody buy you a copy of "Eats, shoots and leaves."?)
I do agree that one needs to reflect upon history - and learn lessons from it - so that we don't keep repeating the same mistakes over and over again.
Empires have come and gone. Britain is a dead parrot, deceased - it just hasn't quite fallen off its perch.
Helmet??? Too cryptic for a crofter's cortex.
Slainte Mhor
Posted by: Anne on 8:14pm Thu 24 Apr 08
Shell said the cuts - which affect office-based posts only - will be made over the next three years in order to improve efficiency.
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