Wood Group Cuts Wages of UK Oil Contractors
Oil services provider Wood Group said on Friday it would cut the wages of around 200 British contractors by nine percent, the company's third reduction of contractor pay in nearly two years as weak oil prices have weighed on revenue. The pay cut applies to a third of around 600 UK-based contractors employed by Wood Group PSN, a subsidiary which specialises in oil field commissioning, maintenance and construction work, the company said.
Technip Takes 20% Stake in Vallourec Pipe Weld Unit
French oil services company Technip and Serimax, a welding subsidiary of steel pipe maker Vallourec have reached an agreement in which Technip will take a minority 20 percent stake in Serimax, the companies said. The firms did not disclose the value of the deal, but said it would offer integrated solutions to oil company clients who are facing financial constraints due to the oil price collapse and have to tighten capital expenditure.
Petrofac Expects 2016 IES Division Loss
IES division to post a loss in 2016. British oilfield services company Petrofac said its integrated energy services (IES) division, whose performance is linked to oil price moves, will post a loss in 2016 due to the slump in crude prices. The company, a member of the FTSE 250 index of mid-sized stocks, said it will move parts of the expected loss-making business into its main engineering and construction unit on Jan.
Oil Services Must Take on More Risk, Petrofac CEO Warns
Oil service companies will have to assume more risk in the coming years as investor pressure and a flat crude price make oil company clients push harder to avoid delays on megaprojects, the chief executive of FTSE 100 contractor Petrofac said. The biggest oil companies have seen huge delays and broken budgets at projects ranging from record-breaking Australian liquefied…
