Dozens of jobs cut at Orkney oil terminal

Dozens of jobs have been cut at an oil terminal in Orkney.

The number of workers at Flotta site has been “significantly reduced” with around 156 employees remaining.

Unite the union has said “hostile” government policies have led to job cuts and the acceleration of sites in the oil and gas industry being decommisioned.

Main contractor Petrofac said it had worked with operators Repsol UK to introduce job sharing and a volunatary redundancy scheme.

There were also 17 compulsory redunancies by Petrofac.

12 roles at Repsol were under review with ten taking voluntary redunancy and one assigned to a role offshore.

The Flotta Terminal is located on the island of Flotta in the Orkney Islands and was commissioned in 1977, with Repsol Sinopec Resources UK Limited becoming the major shareholder and operator in May 2000.

The terminal covers around one-sixth of the area of Flotta Island.

Crude oil is imported to the terminal from several offshore installations through a 30” subsea pipeline.

A Repsol UK spokesperson said: “Repsol UK has undertaken a review of its operations at Flotta site, which will result in a new and more efficient operating model. The health and safety of our people and delivery of safe operations remain our priority.

“We remain committed to thrive in the UK North Sea basin, but the UK government’s policies and adverse economic conditions make these changes necessary.

“Of the 12 Repsol employed under-review roles, 10 have chosen voluntary redundancy, and one has been reassigned to a role offshore.”

A Petrofac spokesperson added: “We worked closely with our client, colleagues and the union following proposed changes to client requirements at Flotta Terminal.

“This collaboration enabled the introduction of job sharing and a voluntary redundancy scheme to reduce the number of colleagues affected. We continue to support our client to deliver safe operations.”

Paula Buchan, Unite industrial officer said: “The consultation process with Repsol at the Flotta oil terminal is over with the workers receiving an enhanced voluntary redundancy package.

“The number of workers at Flotta has significantly reduced but the working patterns are also changing to an onsite rota as opposed to workers going home each night.

“This means workers will have more time at home through the job share roles which were negotiated to save as many jobs as possible.

“Unite has forthcoming pay negotiations with Repsol which will hopefully provide a stronger platform for delivering better pay and conditions for those workers remaining at Flotta.

“There is no doubt that the hostile regulatory framework and government policies are significantly contributing to job cuts and the acceleration of assets being decommissioned in the oil and gas industry.”