In view of the difficult business and economic conditions in the oil and gas market and declining workload, Subsea 7 will implement a programme of cost reduction measures including a re-sizing of the fleet and workforce, and the restructuring of its corporate organisation.
It is envisaged that the overall reduction in the global workforce would be approximately 2500 by early 2016, down from the 13,000 reported at the end of 2014. Consultation with employees and employee representatives will continue to take place on a local basis and consultation processes have begun in Norway and the UK.
Fleet Reduction
The global fleet will be reduced by up to eleven vessels, based on a mixture of non-renewal of charter vessels and either disposal or stacking of owned vessels. It is intended that the reshaping of the fleet will be phased over the coming twelve months, commensurate with the projected global workload as well as continued effective execution of projects.
At the end of 2014, the fleet consisted of 39 vessels with a further five under construction.
Difficult Oil and Gas Environment
With these cuts, Subsea 7 hopes to adapt to present market challenges and to maintain its competitiveness and long-term viability. Jean Cahuzac, Chief Executive Officer, states 'Reducing employment is not a decision we take lightly, but one that is necessary in today's difficult oil and gas environment.'
According to Cahuzac, deepwater oil and gas production will remain a significant market with long-term growth potential. He adds: 'While implementing the restructuring of our organisation, we remain committed to preserving our core capabilities and investing in key enabling technologies to deliver cost-effective solutions.'
Picture: One of Subsea 7's vessels, the Seven Oceans (by Flying Focus).
