Energy services firm Hunting has announced plans to cut jobs at its Aberdeen site as part of a broader restructuring effort aimed at saving approximately £8.2 million annually. The decision is attributed to the challenging North Sea political landscape, particularly the UK’s oil and gas taxation policy, which has significantly impacted the company’s operations.
Graham Goodall, Hunting’s Europe, Middle East, and Africa (EMEA) managing director, confirmed that the Badentoy site in Aberdeen will see a reduction in headcount. He stated: “For Badentoy, we are looking to reduce some of the headcount here. That’s mainly due to the fact that we’re looking to move our well intervention manufacturing piece over to our new Dubai facility. It’s for efficiencies and distribution around the region more than anything.”
Goodall emphasized that the Badentoy site will not close but will undergo changes, particularly in the well intervention manufacturing segment. He noted:
“The Badentoy site is a mixed site in that we have subsea based there, we have well intervention, and we have our OR product line. That’s quite a big site, but the impact is on the well intervention piece.”
The restructuring is part of a larger effort across Hunting’s EMEA operations, which includes the closure of its Oil Country Tubular Goods (OCTG) site in the Netherlands. Future geothermal-related orders from this site will be handled by Hunting’s UK operations.
Hunting’s decision reflects broader industry concerns about the UK’s tax policies. The company has previously criticised these policies, which have led to significant challenges for businesses operating in the North Sea.
In Case You Missed it:
Constituency MP Andrew Bowie commented on Hunting’s decision:
“This is more evidence the windfall tax has been extended for far too long, at far too high a rate, for many companies to continue operating in the North Sea. Labour tried to pull a rabbit out of the hat by claiming the energy price levy will end in five years.”
“No one has been fooled by this. Another valuable North East employer has uprooted from my constituency and taken its high-skilled jobs elsewhere. This Labour government must reverse its damaging vendetta against oil and gas before more firms do the same.”
The restructuring aims to restore profitability to Hunting’s EMEA segment by early 2026. Workforce consultations have begun, and further details on the restructuring will be provided in the company’s first-quarter trading update scheduled for April 16.
