Aker Acts to Find Work for more than 200 Employees amid Slowdown

Norway's Aker Solutions said Monday that it is trying to find roles for more than 200 of its employees amid a slowdown in the country's offshore maintenance and modifications market.

Aker said it is acting proactively to ease overcapacity in its Norwegian MMO (Maintenance, Modifications and Operations) business, which is being affected by a lower demand as oil companies reduce spending plans. The firm will move 100 MMO engineers to a subsea hub that is being established in Stavanger to support execution of its order backlog.

It is also offering about 130 employees a transfer to Aker Advantage, the company's internal recruitment unit that will seek jobs for these employees either inside or outside Aker Solutions. Aker Advantage has an agreement with Statoil to provide the oil company with personnel with engineering and other technical experience. The contract covers work within mechanical completion and commissioning, process technology, mechanical technology, HSE technical services, electrical and automation technologies and life-cycle information management.

Aker Head of MMO Tore Sjursen commented in a company statement:

"The offshore maintenance and modifications market in Norway has weakened considerably this year, causing overcapacity and weighing on earnings in the MMO segment. The industry has seen lay-offs. We're seeking to find our employees alternative jobs within the company, the Aker group or in other firms operating on the shelf."

The overcapacity in the oilfield services sector follows news late last year and earlier this year that European majors planned to cut back on near-term spending. In February, Statoil said that it would keep a lid on its capital spending plans and expected to invest eight-percent less between 2014 and 2016 than had been previously estimated.



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