The Aberdeen-based company, which frequently brings rig maintenance work to Dundee, has issued an “at risk notice” to its entire workforce.

Offshore employees of Rowan Drilling UK North Sea have received a second communication notifying them of the start of the redundancy consultation process.

It is thought as many as 900 employees are affected as each of the company’s three rigs - Rowan Gorilla V, Rowan Gorilla VII and Rowan Stavanger - has crews of up to 300.

The letter states the company is reducing crew levels because of the challenging times facing the oil industry.

Current and future markets for drilling services are severely depressed and there is fierce competition for future prospects.

The letter explains that the “dramatic reduction in the price of oil, coupled with escalating costs, has led to a slow-down in drilling activity.”

Drilling units have been stacked and in some cases scrapped leaving crews without work.

Negotiations have been taking place with customers to keep the Gorilla V and Gorilla VII contracted. The company warned that even if these are successful it is likely both rigs will be subject to a period of inactivity for the latter part of this year before commencing drilling in the early part of 2016.

The Rowan Stavanger is likely to finish its assignment in early June, and there is no firm contracted work despite continued marketing efforts although some promising opportunities later this year.

The letter is signed by Pete Wilson, vice-president of drilling operations in the North Sea, and Lori von Heyking, vice-president of human resources

Rowan Drilling was invited to elaborate on the situation this morning, but no response was received at the time of going to press.

The company’s move follows similar action by Rigmar which this week confirmed it was cutting jobs from its entire workforce including Dundee because of a slowdown in the industry.

Source: www.thecourier.co.uk

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