Premier Oil has announced to staff that it plans to reduce its head count by up to 10%, this will affect at least 20 full time members of staff in Aberdeen, this follows a cut to contractor rates made last month and a reduction of 23% in spending for 2014, the decision has been made due to the current oil climate.

London based Premier Oil, suffered a £250million loss in 2014 due to the drop in price of crude oil and impairment charges of £210million relating to its North Sea fields

Delays to the companies Solan development off Shetland contributed to the charge, work on the Solan project started in November last year but was hampered by bad weather and low productivity due to winter conditions, the Solan project is now not expected to produce first oil until the end of 2015.

Premier is also to begin decommissioning work on its North Sea Balmoral rig, which has been operating in since 1986, due to it no longer being profitable.

The company who has global operations from Falklands to Indonesia made a reported a profit of £185million in 2013

In a cost cutting exercise it offloaded non-operated interests in the producing Scott, Telford and Rochelle fields to MOL Group for about £80million last year. And Swedish petrol firm Lundin bought its 30% stake in PL359 for around £12million.

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