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

People & Company News

MARAD Support for Hydrogen Fuel Cell R&D

  The U.S. Department of Transportation’s Maritime Administration (MARAD) today announced that it is providing $500,000 to support a feasibility study for the design,

M/V "Georgiana H" refused access to the Paris MoU region

On 17th July 2015 M/V “GEORGIANA H” with IMO number 8911413 was detained in Marina di Carrara (Italy). This is the third detention in the Paris MoU region within the last 24 months.

Ghana to Roll out Shipping Training

Ghana is considering establishing modalities to compel shipping companies to introduce a training regime which ensures that their local staff gain professional qualifications in shipping.

Technology

MARAD Support for Hydrogen Fuel Cell R&D

  The U.S. Department of Transportation’s Maritime Administration (MARAD) today announced that it is providing $500,000 to support a feasibility study for the design,

BAE Systems Awards Software Contract to SENER

The Spanish company SENER, Ingeniería y Sistemas S.A has closed a contract with U.K.-based BAE Systems PLC for the integration between FORAN CAD/CAM System and

Carnival’s Costa Brand Orders Two LNG Cruise Ships

Costa’s two new cruise ships will be the largest ever built based on guest capacity; Costa will join sister brand AIDA Cruises in building the first-ever cruise

Offshore

IRSHAD Acquires Damen Shoalbuster 2308

Abu Dhabi Petroleum Ports Operating Company (IRSHAD), a part of the ADNOC Group of Companies, has taken delivery of a Damen Shoalbuster 2308, named Al Marfa 1.

BSEE Updates Hurricane Reporting Requirements

BSEE is providing updated guidance for the current and future hurricane seasons through a Notice to Lessees (NTL) released July 27, 2015. NTL 2015-G02 clarifies

Offshore Wind Shift to Drive Vessel Services Cooperation

Evolving procurement processes for U.K. Round 3 offshore wind farms will require a greater number of work streams, personnel with new and differing skills, and

Offshore Energy

Kayaktivists Poised To Launch Blockade Of Shell Icebreaker

A small group of protesters and activists are gathering at the Cathedral Park boat ramp in Portland, preparing to stay for a 24-hour vigil as they wait for Royal Dutch Shell Oil's ice-breaker ship,

BSEE Updates Hurricane Reporting Requirements

BSEE is providing updated guidance for the current and future hurricane seasons through a Notice to Lessees (NTL) released July 27, 2015. NTL 2015-G02 clarifies

Offshore Wind Shift to Drive Vessel Services Cooperation

Evolving procurement processes for U.K. Round 3 offshore wind farms will require a greater number of work streams, personnel with new and differing skills, and

 
 
Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Repair Sonar Winch
rss | archive | history | articles | privacy | 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: 0.5142 sec (2 req/sec)