Engineering group Hunting PLC has announced “major restructuring” – putting 200 UK jobs at risk – citing the UK tax regime and “low levels of future drilling activity anticipated in the North Sea”.
The move comes following a review of the group’s European operations, taking into consideration the “tax regime of the UK North Sea oil and gas industry and the parallel strategy of the UK government to decarbonise its energy supply”.
A trading update issued this week by Hunting confirmed: “The directors have taken the decision to restructure the group’s EMEA operating segment, given the low levels of future drilling activity anticipated in the North Sea.
“The directors reiterate the strong outlook for the global oil and gas industry; and recognise that its operating footprint needs to align with future activity, which will likely focus on North and South America, the Middle East, Africa and Asia Pacific out to 2030.
“A review of sales, general and administration costs is also underway.
“In total, management plans to eliminate up to c.$10million (£8.18million) of costs in the year, the majority of which being from the restructuring of the EMEA operating segment.”
Energy Voice reports the restructuring will cast 200 jobs across the UK, including at Hunting’s bases in Altens, Fordoun and London, into doubt.
