Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

BG Group reduces contractor rates by 10%

Industry news
Industry news

BG Group has become the latest firm to cut its contractor rates in the wake of the fall off in oil prices.

A staff meeting was held Friday in Aberdeen where people were informed of the priorities for the year, the need to improve efficiency and the decision to reduce contractor rates by an average of 10%.

BG employs 230 contractors in Aberdeen.

The company joins a number of firms, including BP, Premier Oil, Wood Group PSN and Apache, that have also announced contractor rates cuts within the last few months.

Last year, oil service firms Petrofac, Wood Group and Amec first moved to reduced contractor rates by 10% to help keep business competitive and reduce spiralling costs.

It was the first move for Ernst den Hartigh, who has taken over the role as managing director of Europe E&P from Andy Samuel.

Mr Hartigh took over the role on 1 Jan following Mr Samuel’s departure to the Oil and Gas Authority (OGA).

Ernst den Hartigh said: “This decision was not taken lightly but in the current economic climate is an important step in lowering our cost base and remaining competitive in the future.

“Cost reduction is important but there is much more we will be doing. We must seize the opportunity to do things differently”.

Prior to taking over the new role, Mr Hartigh was chief operating officer for BG in the region based in Aberdeen.

Following Mr Hartigh’s promotion, Steve Cox was appointed as vice president, UK operations with effect from January.

BG Group has interests across the UK and Norway.

It operates the Armada, Everest and Lomond platforms; has major non-operated interests in the Buzzard, J Area, and Elgin Franklin fields.

Net production in the UK was around 106,000 barrels of oil equivalent per day in 2014, up 6% on 2013 and around 7% of total UK domestic production.

The firm employs 700 people in the UK and Norway. Of these, 550 are based in Aberdeen and on three offshore platforms.

The company said it continues to progress its £2.4billion high-pressure, high-temperature field, Jackdaw, and it is “reviewing more economic and lower risk development solutions”, involving a tie-back of the field to third-party infrastructure.

BG said it would make a final investment decision in 2017 on whether or not to go ahead with the project.

For more oil and gas news click here.

Recommended for you

More from Energy Voice

Latest Posts