Subsea 7 takes further steps to ride downturn
Subsea 7 is taking further downsizing and restructuring measures in response to the subdued state of the global E&P sector.
LUXEMBOURG – Subsea 7 is taking further downsizing and restructuring measures in response to the subdued state of the global E&P sector.
It plans to shed around 1,200 staff by early 2017, leaving a workforce of roughly 8,000. Consultations with employees have started in Norway and the UK.
Up to five of the company’s vessels are scheduled to leave the current active fleet by early 2017, based on stacking owned vessels and returning chartered ships when current contracts expire.
These and ongoing measures should deliver around $350 million/yr in cost savings.
From July 1, the group’s organization will also undergo changes, with three new segments: SURF and Conventional, i-Tech Services and Corporate (including Renewables and Heavy-lift).
This will replace the Southern Hemisphere and Global Projects and Northern Hemisphere and Life of Field business units and Corporate segment previously reported.
COO John Evans and executive vice president – Commercial Øyvind Mikaelsen will report to CEO Jean Cahuzac, while Steve Wisely will become senior vice president i-Tech Services, reporting to Evans.
Cahuzac said: “Our new organizational structure reflects our focus on commercial and long-term strategic priorities as we adapt to the present low levels of activity and drive more efficient ways of working with our clients.
“The reduction in the size of our workforce is a necessary step to maintain our competitiveness and protect our core offering through the oil price cycle.
“We remain confident in the long-term future fordeepwateroil and gas production. We are committed to retaining our core capabilities and developing our leading market position through a strategy focused on differentiation delivered by our people, assets and technology.”
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