London-headquartered offshore drilling firm Ensco has announced additional cuts to reduce expenses as the market downturn continues to haunt the sector.
Ensco is taking a number of measures to save an additional $30m annually including the restructuring of its global operations down from five business units to three. The company is also reducing the cost of warm stacking its rigs and drillships, and reducing its onshore staff numbers by a further 14% as well as increasing its offshore staff cuts to 15%, up from the 9% previously targeted.
Carl Trowell, CEO and President of Ensco, said: “We recently streamlined our global operations reporting structure and have taken additional steps to reduce expenses. In total, the actions we have taken year to date to reduce onshore support positions will generate a combined savings of $57 million on an annual basis. Steps taken to adjust discretionary compensation plans will reduce offshore unit labor costs by a total of 15% compared to 2014 levels.”
Ensue says the downturn has impacted its Brazil and Asia-Pacific operations the most, and will now bring the Brazil operations to its North & South America business unit based in Houston, while Asia-Pacific will now report into the Middle East, Africa, Asia & Pacific business unit in Dubai.
