BP Plc has said Thursday that 3,500 North Sea oil staff will lose their jobs as it plans to save costs amid the plunging cost of oil.
Sources told Skynews.co.uk said the company is due to brief workers in Aberdeen Thursday on its plans, which it had previously said would result in $1billionn of restructuring costs this year. BP is keen to ensure its business in the North Sea remains competitive and sustainable for the long term as Brent crude costs hover below $50-per-barrel - down from $115 last June.
The company said: "It has been well signaled around the industry that costs have been rising and we need to respond to toughening market conditions in line with our competitors and move our cost structure into a competitive and sustainable position."
It was due to make its announcement 24-hours after the governor of the Bank of England, Mark Carney, warned that falling oil prices represented a "negative shock" for the Scottish economy - but a "net positive" for the United Kingdom, UK as a whole, given benefits for consumers.
Shell and Tullow Oil are among other oil firms which have scaled back their investments. Tullow said Wednesday that its gross annual profits were expected to fall by more than half on 2013 - and it was taking a write down of $600m due to asset revisions.
It also raised the prospect of major job losses - warning that: "A major internal review of Tullow's organisation is ongoing which will lead to substantial long-term cost savings and efficiencies across the group." Tullow added that it expected to announce the details at its full-year results on 11 February.