Oslo: Offshore survey vessel operator Electromagnetic Geoservices (EMGS) has said that the company will be implementing further cost reductions, in addition to those already previously announced, reflecting the challenging market in the oil service industry.
The company said that the cutbacks are due to “further delays in contract negotiations and lower than expected demand for EM data” and the main saving will be via a reduction of the company’s global headcount by 20%.
A reduction of the vessel capacity from four to three will also provide savings. A It was not specified which vessel EMGS would return, it currently charters Atlantic Guardian, BOA Thalassa, BOA Galatea, and EM Leader.
A total of 50% in capital expenditure reductions is targeted for 2015, a saving of approximately $35m.