More than 1,000 North Sea workers face an uncertain future today after one of the world’s biggest oil companies announced plans to sell up and leave the UK.
Marathon Oil is putting its British and Norwegian fields up for sale as it aims to focus on the shale gas boom in the US.
The company – which has its British headquarters in Aberdeen – insisted last night that it would be business as usual until the assets were sold.
But last night one industry expert described the announcement as a “concern” for Aberdeen.
Marathon has had a significant North Sea presence for two decades.
It operates the South, Central, North and West Brae fields, as well as holding stakes in the East Brae and Braemar fields.
It also operates the Brae-Forties pipeline, and has stakes in the Foinaven field west of Shetland and the Sage pipeline to the huge St Fergus gas terminal.
North Sea expert Colin Welsh, chief executive of Simmons and Co, said the departure was worrying.
“Production from Marathon’s North Sea assets is set to decline rapidly next year and will be a drag on the company’s growth aspirations going forward,” he said.
“Redeploying billions from the sale of those assets into their growing US land shale activities is good business for Marathon shareholders – but it’s a concern for the UK.”
But Carri Lockhart, Marathon’s regional vice-president for the UK, insisted little would change until the assets were sold.
“Information meetings were held yesterday with our onshore and offshore employees,” she said.
“There will be no change to our business during this marketing process.
“We will continue with our work as a responsible operator, delivering on our planned projects, including the drilling of new wells in the South Brae Field, and remaining focused on safe and reliable operations.”
The company has 213 onshore staff at its offices at Rubislaw Hill. It has a further 172 people offshore in UK waters and more than 400 contractors.
Details of the sale were contained within the company’s 2014 business plan.
Jeremy Cresswell – editor of the Press and Journal’s Energy supplement – described the decision, and the timing of it, as “disrespectful”.
“This is the time of year when the big US oil corporations publish their plans for the 12 months ahead – and of course one is looking for a mention of North Sea investment,” he said.
“These outlook statements can be used to hide bad news, which is exactly what Marathon Oil has done with a perfunctory line or two about its North Sea assets now being for sale.
“Just like that – no message specifically tailored to the UK and Norway where more than 1,000 jobs hinge on the prosperity of assets such as the multi-platform Brae fields complex, or the Alvheim field production hub.
“I consider that disrespectful to the North Sea community – most of all loyal employees and contractors.”
To read Jeremy Cresswell’s full analysis, visit Energyvoice.com
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