Archives

Home   >   Archives   

Industry “Social Dumping”, a must read in our opinion

Rig Lynx
  • By Rig Lynx
  • Feb 04, 2019
  • Category : Archives
  • Views : 663

(Energy Voice) Union bosses have accused offshore accommodation provider Prosafe of perpetrating one of the most “appalling examples of social dumping” ever seen.

They claimed Cyprus-headquartered Prosafe had made “loyal, competent” employees redundant and was using an agency to recruit replacements at much lower pay grades.

Prosafe deputy chief executive Stig Christiansen argued the company was “doing everything right according to law” and that there was nothing strange about using agencies.

In an emailed statement, the company, which has a base in Aberdeen, added some workers on the UK Continental Shelf had been “offered voluntary termination on good terms”.

Last week, the Press and Journal reported that Prosafe was shedding up to 150 workers, most of whom are understood to be British.

Today, unions accused Prosafe of enticing loyal employees to accept voluntary redundancy packages and offering to hire them back when activity increased.

The Offshore Coordinating Group (OCG), a coalition of UK unions, and Norway’s Industri Energi, said posts were being advertised in Poland and Croatia.

They claimed the pay packages being offered through the OSM agency were “substantially lower”.

They called for oil and gas companies, including clients BP, ConocoPhillips and Equinor, to stop giving Prosafe contracts to provide flotels in support of UK North Sea projects.

Furthermore, they have asked the International Transport Federation to alert trade unions around the world to the situation “unfolding in the UK sector”.

And they have asked the UK Health and Safety Executive to look into the competence and training standards of short term agency workers.

RMT regional organiser Jake Molloy said: “We would hope that the clients using these barges will act responsibly and moreover act in accordance with their own internal policies associated with codes of ethics.

“What is happening here is completely unethical and the likes of BP, Equinor and ConocoPhillips should recognize this.”

Unite regional officer John Boland said: “The industry has repeatedly claimed that the sector must become more competitive.

“However, if the actions of Prosafe are to be considered competitive then we want no part of it.

“Our member’s jobs are not for sale to the lowest bidder in a drive to be competitive.”

Prosafe said it always “aimed to comply” with the laws and regulations of the countries in which it operates.

A spokeswoman for Prosafe said: “We have always used agency personnel to supplement Prosafe staff, but given both the nature of our business with short-term contracts, and the industry downturn resulting in longer lay-up periods, Prosafe has to move to an even more scalable crewing model to remain competitive and sustainable as a business.”

She added: “Prosafe has entered into an agreement with a manning agency, OSM, for some of the offshore positions.

“OSM is a recognised international supplier which offers staff with the right qualifications and expertise, and some of our former employees have chosen to apply for jobs with them.

“To ensure thorough knowledge of the respective accommodation vessels, efficient operations and a high level of safety, there will be Prosafe employees in the leading positions on our accommodation vessels.”

BP, ConocoPhillips and Equinor have been contacted for comment.

Image is licensed under the Creative CommonsAttribution-Share Alike 2.0 Generic license.

If you like what we do then let us know by becoming a patron through Patreon, for as little or as much as you would like!

Hit the button below!

Check out our other current stories!

Join the largest oil and gas community on iOS and Android!

Download the app here!

Comments (0)

Leave Comment


Check out our other stories

Rig Lynx
Mar 09, 2023

  Valaris Limited announced new contracts awarded subsequent to issuing the Company’s most recent fleet status report on February 21, 2023.   Three-year contract with Petrobras for drillship VALARIS DS-8. The rig will be reactivated for this contract. The total contract value is approximately $500 million, including a $30 million mobilization fee. 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. The contract is expected to commence in second quarter 2023. 70-day contract with Beach Energy offshore New Zealand for heavy duty modern jackup VALARIS 107. The contract is expected to commence in third quarter 2023. The total contract value is approximately $26 million. President and Chief Executive Officer Anton Dibowitz said, “We are particularly pleased to have secured the award for preservation stacked drillship VALARIS DS-8, for a contract that is expected to generate a meaningful return over the firm contract term, and we remain focused on exercising our operational leverage in a disciplined manner. This most recent award represents the sixth contract awarded to one of our high-quality stacked floaters since mid-2021, and speaks volumes about our demonstrated track record of project execution when reactivating rigs.”   Dibowitz added, “Following the reactivation of VALARIS DS-17 and DS-8, we will have ten floaters working across the golden triangle, including four drillships in Brazil, a market where we expect to see continued growth over the next several years.”   Updated Guidance   As a result of the contract awarded to VALARIS DS-8, which will require the rig to be reactivated from preservation stack, we are updating our first quarter 2023 and full-year 2023 guidance provided on our fourth quarter 2022 conference call on February 21, 2023.   First Quarter 2023   Contract drilling expense is expected to increase by approximately $5 million to $385 million to $395 million. Adjusted EBITDA is expected to decrease by approximately $5 million to negative $5 million to breakeven. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $25 million to $30 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Full-Year 2023   Revenues are anticipated to be $1.8 billion to $1.9 billion, unchanged from the guidance provided on our fourth quarter 2022 conference call. Contract drilling expense is expected to increase by approximately $60 million to $1.49 billion to $1.59 billion. Adjusted EBITDA is expected to decrease by approximately $60 million to $180 million to $220 million. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $280 million to $320 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Capital expenditures are expected to increase by $60 million to $320 million to $360 million. Source: Valaris Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here  

Rig Lynx
Mar 09, 2023

  Seadrill Limited announced that the West Neptune has executed approximately six months of term extensions with LLOG Exploration Offshore, L.L.C in the US Gulf of Mexico.   The extensions will commence in direct continuation of the existing term, and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. Total contract value for the extension is approximately $79 million. Source: Seadrill   Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here  

Rig Lynx
Mar 09, 2023

  Semisub rig owner Dolphin Drilling has inked a new contract with Peak Petroleum in Nigeria for its 1974-built Blackford Dolphin.   The firm contract, which follows the letter of award in January, gives the Euronext Growth-listed owner of three rigs the potential to extend the unit’s backlog by a minimum of 120 days and up to 485 days. The deal adds to and will be a direct continuation of the previously announced 12-month contract with General Hydrocarbon Limited (GHL).   Øystein Stray Spetalen-backed company said the effective dayrate associated with the minimum firm period of the contract is $325,000, including the mobilisation fee.   “The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” noted Bjørnar Iversen, CEO of Dolphin Drilling.   Source: Dolphin   Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here