By Bruce McMichael
Over 225 jobs are to be lost at the Sullom Voe oil terminal in Shetland Island as its operator, BP blaming falling levels of oil flowing through the site, seeks radical ways to make the facility economic. Around 375 staff will remain on site, which is now expected to operate beyond 2015.
Trades union officials have been consulted about the proposed changes and a community liaison group comprising workers representatives, BP officials, local councillors and Shetland Enterprise is being put together to help manage the effect of the change on the overall Shetland economy. The struggling Shetland economy, where there is 1.5% unemployment, will suffer.
Commenting on the proposed job losses, Ann Black, Deputy Chief Executive of Shetland Enterprise, told Sosialurin: "We are obviously very concerned at the potential impact of the proposed job losses, these are highly skilled, well paid jobs.
?Shetland Enterprise intends to work very closely with BP and other agencies to minimise the impact and retain the skilled workforce in the local economy."
Warnings of the decision were made last month when the energy supermajor said it planned to restructure the facility in the face of declining North Sea production. Also under threat are the terminal?s gas plant and secondary oil processing equipment, both of which face decommissioning
BP staff account for around 300 staff, with about 75 directly affected by this round of job losses.
BP staff and contractors are being offered voluntary redundancy. Decisions will be finalised by next March.
Hundreds of contractors work at the facility, and their number will be cut by 50% to around 150. Many more contractors are employed on a project basis, but with no major civil engineering work planned high numbers of contractors are unlikely to be seen again on the island until the plant is finally decommissioned.
BP is hoping cutting jobs are reorganising work practises will breathe new life into the terminal, which had originally been expected to close in the late 1990s. Built in the 1970s, it was originally designed to operate until 1997. However, a with the Shetland Islands Council, including compromise over rent payments, staved off threatened closure.
Paul Dymond, Sullom Voe general manager, said: ?the (changes are) all about ensuring that the terminal's core business remains competitive. The current size and scale of the organisation and the facilities are mismatched to the volumes of hydrocarbons we are now processing. Streamlining the operations is critical if we are to create a successful and sustainable future."
Some 26 companies have interests in the terminal, including Shell, ExxonMobil and Kerr-McGee, which receives production through the Brent and Ninian pipeline systems.
