AROUND 260 workers face redundancy at Sullom Voe oil terminal in the wake of a continued slump in global oil prices.
Wood Group PSN and Bilfinger have announced a consultation with unions on slashing the size of the workforce.
The news comes as oil services firm Aker Solutions confirms up to 70 posts will go from its UK subsea operations, headquartered in Aberdeen.
The union Unite says the "Shetland Islands Agreement" means that Sullom Voe employees who live in the isles are less likely to lose their jobs. Many of the posts are expected to be lost in engineering, maintenance and repair.
Wood Group said that it in discussions over axing 90 of its 230 jobs at the terminal after a review of personnel requirements.
Bilfinger says its consulation was "as a result of a reduction in seasonal workloads due to winter working conditions.."
It is looking to make some 170 redundancies – more than half of its 290-strong workforce at the terminal. The consultations are due to conclude on the October 30, with workers potentially being laid off in November.
Shetland MSP Tavish Scott is expected to raise the job losses at the BP-operated terminal with Nicola Sturgeon at First Minister’s Questions on Thursday.
A Wood Group PSN spokesman said the move is in response to changes in the scope of its maintenance work its being asked to carry out.
“We continuously review our resource requirements to meet our customers’ needs and to drive efficiency and effectiveness in our service provision," said the spokesman.
“We are committed to working closely with employees and unions during this period of consultation.”
Their report said continuing decline in oil prices has produced an "increased risk" of what it calls the premature decommissioning of critical infrastructure with the potential to shut down whole areas of the continental shelf. It said Sullom Voe was a vital cog in the oil and gas wheel.
The price of Brent North Sea oil was trading on Wednesday at $51.92 a barrel around half its value last year. Prices have been eroded by a mixture of rising production in places such as the US and Iraq, coupled with plunging demand due to a flatlining world economy.
Aker Solutions, the Norway-listed firm, said it was cutting its workforce capacity because of "a continued market slowdown".
A 30-day redundancy consultation is now under way with representatives of its UK employees.
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