OSLO: Aker Solutions will reduce its workforce in its maintenance, modifications and operations (MMO) department by around 300 members of staff.
The Norwegian oil services firm plans to reduce its headcount in response to lower demand after oil prices declined.
There are 4,300 staff members within the affected unit. Per Harald Kongelf, head of Aker Solutions in Norway, said: “Activity in the MMO market in Norway has dropped considerably since last summer, causing overcapacity. As we see it today, these challenges will continue through 2015 and possibly also into 2016.”
Aker Solutions has about 8,300 own employees working within subsea and field design in Norway. Revenues in the MMO business accounted for around a quarter of the firm’s total sales in the fourth quarter.
The company’s order backlog rose to NOK 48.3 billion in 2014 from NOK 41.2 billion a year earlier, helped by subsea contracts in countries such as Brazil and Angola, as well as MMO orders in the UK.
Aker Solutions in January also won a five-year contract worth NOK 4.5 billion from Statoil to provide engineering, procurement and management assistance services at the Johan Sverdrup development.The contract is part of a 10-year framework agreement and came after Statoil exercised an option.
