North Sea Shedding Assets, Employees

North Sea Shedding Assets, Employees

Oil and service companies operating in the North Sea are writing down assets and firing workers in an effort to lower production expenses, reported The Scotland Herald.

Firms such as Dana Petroleum are recording losses and writing down assets. The Korean-owned company lost $445m in 2014, compared to a profit of $165m the year earlier. Dana wrote down about $200m worth of assets in the North Sea after posting its results, stating that the current listing more accurately reflected its value.

Dana Petroleum was purchased for nearly $3b in 2010 by the Korean National Oil Corporation, and was expected to have strong growth in the North Sea.

Other companies have faced similar problems operating in the costly fields of the frigid North Sea. Two of the three major helicopter companies that operate in the area recently announced job cuts would be made, noted the Press & Journal UK.

The announcements made by CHC Helicopter and Bristow Helicopter prompted a rapid response from pilots, with the British Airline Pilots Association, a trade union, organizing meetings to discuss potential strikes.

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