Norway's Farstad Shipping ASA announced Tuesday that the consolidation of its oil service business in Australia to Perth after the company decided to close its management office in Melbourne will result in a loss of 35 jobs.
"Consequently, the Australian onshore organization will be reduced from 65 to around 30 employees," Farstad said in the press release.
Company CEO Karl-Johan Bakken said the transfer of its activities to its new headquarters in Perth is intended to secure the its position as a leading regional oil service firm in the future. Perth will be the headquarters and the operations center, in addition to its role as Farstad's training and offshore simulation center.
It cited the challenging market situation with low oil price and the subsequent sharp reduction in offshore activity for the changes.
"It is with regret that we have to lay off dedicated and highly skilled employees, but it is the unfortunate result of a necessary capacity adjustment," Bakken said.
Farstad also revealed that in addition to working on establishing an overall refinancing plan, the firm is continuously working on structural solutions in order to secure its competitiveness and to align with the market and the needs of its clients.
Meanwhile, Farstad Shipping Pte Ltd. in Singapore, which has been reporting to Australia, will now come under the Head Office in Aalesund.
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