Enquest PLC and Premier Oil forecast reduction in UK oil sector

LONDON, October 18. The British company enquest PLC and Premier Oil, working in the oil and gas sector in the North sea predict a reduction of 10 thousand workplaces in the industry of the United Kingdom due to the long downturn in oil prices. On that Sunday reported the Financial Times.

Thus, the publication emphasizes that since last year, more than 5 thousand people lost their jobs, representing 15% of the total number of jobs.

CEO of enquest PLC Amjad Bseisu said that the job cuts in the oil sector in the North sea may increase threefold. “There was hope that the situation will repeat the scenario of 2008-2009 /when oil prices rose sharply after the recession, but this has not happened”, – he explained.

Companies have to adapt to a prolonged downturn in oil prices, the newspaper cites the opinion of experts. According to their forecasts, the planned further staff reductions and renegotiations of contracts.

As noted by Financial Times, a British oil and gas sector in the North sea is one of the most costly due to high personnel costs and the reduction of stocks of natural resources. Due to the high cost of oil production in the region is particularly sensitive to fluctuations in oil prices.

Wave abbreviations of States, associated with decreased volumes of production of hydrocarbons in the North sea, has affected major companies such as Shell, BP, Talisman Sinopec, Chevron and ConocoPhillips. Investment activity in the region is down due to high production costs, taxes and the fall in oil prices.