Apache, the US-based oil producer with operations in the North Sea, has commenced consultations for a new wave of redundancies within its Aberdeen-based division. The decision follows the suspension of all platform drilling activities in the region earlier in the year due to the challenging UK fiscal regime and an unstable investment climate.

In response to this shifting landscape, the company conducted a comprehensive assessment of its business operations and is now focusing on managing base production, controlling costs, and optimizing operational efficiency to ensure a sustainable business for the future. As a part of this effort and the transition of assets to late-life operations, Apache has initiated a consultation process aimed at streamlining the onshore organization in Aberdeen.

The consultation will incorporate a voluntary redundancy program primarily affecting the onshore workforce stationed at the Prime Four business park in Kingswells. While approximately 30 roles, mostly offshore, were cut during the summer, this new round of redundancies may potentially affect a maximum of 90 positions. Apache emphasized that this number represents a speculative scenario and may change based on the ongoing consultation process.

In common with other oil producers in the North Sea, Apache has cited the UK Government's energy profits levy, commonly referred to as the windfall tax, as a significant challenge that has hindered its ability to operate in the region as extensively as it has in the past.