The oil giant, which expects to complete the staff reduction by the end of next year, is attempting to slash its operational costs in the face of a steep revenue drop. Brent crude, the worldwide benchmark, dropped to a 12- year low this week, declining 15 per cent so far this year.
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The firm has taken the decision in light of “toughening conditions” in the industry.
BP, one of the first producers to predict a prolonged oil price slump, is cutting staff after dismissing 4,000 employees past year.
BP is to shed about 600 jobs from its operations in the North Sea.
BP, which must also pay $20 billion in fines to resolve the deadly 2010 Gulf of Mexico spill, announced in October plans for a third round of spending cuts and said it would limit capital spending, or capex, to $17-19 billion a year through to 2017.
He said BP was planning to reduce headcount by 600 people in the North Sea over the next two years with most cuts to happen in 2016.
The job losses add to the 4,000 positions cut by BP a year ago as it hunkers down for a prolonged period of lower prices.
BP’s North Sea business employees about 3000 people, and there are several major ongoing projects in the region.
“However, given the well-documented challenges of operating in this maturing region and in toughening market conditions, we need to take specific steps to ensure our business remains competitive and robust”, he said.
The dramatic downscaling of its workforce comes as no great surprise and is a direct reflection of the continuously falling oil price, which was hovering just above the $31 mark on Tuesday.
“We believe that can help to anchor the oil and gas supply chain here in the Aberdeen area for decades to come while diversifying the local economy into emerging sectors including renewables, tourism, food and drink and life sciences”.
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Speaking following the BP announcement, Deirdre Michie, chief executive of Oil & Gas UK, said: “The plummeting oil price has impacted heavily on activity across the UK Continental Shelf”.
