Norway Offshore MMO Slowdown: Aker Helps Redundant Workers

By George Backwell
Monday, July 07, 2014
Working offshore: File photo

Aker Solutions says it is transferring employees to a new subsea engineering hub in Stavanger and using the Aker Advantage recruitment agency to find work for more than 200 employees impacted by the slowdown in Norway's offshore maintenance and modifications market.

The company is acting proactively to ease overcapacity in its Norwegian MMO business, which is being affected by lower demand as oil companies reduce spending plans.

About 100 MMO engineers will be moved to a subsea hub that's being established in Stavanger to support and ensure flawless execution of Aker Solutions' significant order backlog.

Aker Solutions is also offering about 130 employees a transfer to Aker Advantage, which will endeavour to find jobs inside or outside the group. The recruitment firm will in September become part of Akastor, the oilfield services investment business formed as part of the announced split of Aker Solutions.

"The offshore maintenance and modifications market in Norway has weakened considerably this year, causing overcapacity and weighing on earnings in the MMO segment,'' said Tore Sjursen, head of MMO at Aker Solutions. ''While the industry has seen lay-offs, we're seeking to find our employees alternative jobs within the company, the Aker group or in other firms operating on the shelf."

The subsea hub is being established in Stavanger, on Norway's west coast. The city is one of five locations, including Bergen, Ålesund, Kristiansund and Trondheim, where MMO staff have been affected by the slowdown. Almost all of the MMO employees that were offered a transfer accepted the opportunity to move to Aker Advantage or the subsea hub. Aker Advantage will guarantee full salaries and benefits for up to seven months while supporting MMO employees in the search for jobs.

"We're doing our utmost to avoid redundancies and take care of our employees and business, though we can't rule out layoffs if the market should worsen or we're unable to find new jobs for all employees," said Eriksen. "Maintaining the right balance between short-term capacity adjustments while preparing and positioning ourselves for the next wave of growth is a prerequisite for creating long-term shareholder value."

Aker adds that its employees may also find opportunities in markets such as Brunei, Canada and the UK, where demand is growing for MMO services. Aker Solutions in June won a contract from Statoil to provide maintenance and modifications services for the Mariner oilfield development in the UK North Sea.
 

Maritime Reporter January 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Tanzania's Energy Minister Resigns

Tanzania's Energy and Minerals Minister Sospeter Muhongo resigned on Saturday amid a graft scandal that has rocked the gas-rich country and led Western donors to delay aid,

China's COSCO Group Returns to Profit

China Ocean Shipping Group Co (COSCO) returned to profit in 2014 after three years of losses, state media said on Saturday, citing an interview with the group's chairman.

Brent Closes Up, U.S. Crude Down After Saudi King Dies

Brent crude was buoyed on Friday by market uncertainty over the future of Saudi oil output, while U.S. crude fell on more signs of oversupply. Saudi Arabia's new king,

Technology

Petrobras Develops Technology to Cut GHG

Petrobras develops a new technology that reduces the emission of gases that cause greenhouse A new technology to reduce the emission of greenhouse gases (GHG)

Subsea Crane Takes a Long Journey

Last September the test bed in Rostock was the stage of a single lift of the RL-K 7500 subsea crane. The same crane was then loaded and shipped to the South Korean customer.

Glasgow-Singapore Green Ship Deal On

A new research collaboration between A*STAR’s IHPC, Sembcorp Marine Ltd, University of Glasgow and UGS aims to  make a ship’s voyage more smooth sailing by improving

Offshore

Oil Platform Ablaze in the Gulf of Mexico

Fire broke out on an unmanned oil platform in the Gulf of Mexico approximately five miles south of Port Fourchon, La., the Bureau of Safety and Environmental Enforcement (BSEE) reported.

Subsea Crane Takes a Long Journey

Last September the test bed in Rostock was the stage of a single lift of the RL-K 7500 subsea crane. The same crane was then loaded and shipped to the South Korean customer.

Dynamic Positioning & the Potential for USCG Regulations

Dynamic positioning is a vessel capability provided by integration of a variety of individual systems and functions to automatically maintain a vessel’s position

Offshore Energy

Oil Platform Ablaze in the Gulf of Mexico

Fire broke out on an unmanned oil platform in the Gulf of Mexico approximately five miles south of Port Fourchon, La., the Bureau of Safety and Environmental Enforcement (BSEE) reported.

Semco Maritime Expands in Houston

Rig upgrade and repair specialist Semco Maritime opens new Houston office on January 23, offering services for rig customers in Canada, Gulf of Mexico and Brazil.

Maersk Drilling Mulls Leviathan Contracts

Jonas Bjork, commercial manager Maersk Drilling Denmark, a subsidiary of Maersk Group, says that Israel is in his radar in the near future and hinted that his company targets Leviathan contracts,

 
 
Maritime Contracts Maritime Standards Naval Architecture Navigation Pipelines Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2879 sec (3 req/sec)