LONDON -(Dow Jones)- Oil services company Acergy (ACGY) is about to cut between 70-90 jobs in Norway and the U.K. due to falling investment levels by oil and gas companies, according to industry publication Upstreamonline Tuesday.
Acergy wasn't immediately available to comment, but Upstream's sister publication Dagens Naeringsliv reported Acergy's regional Vice President for Northern Europe and Canada Oyvind Mikaelsen as saying: "Due to the huge level of reductions in investments from oil companies, we currently have too much staff."
The company, a subsea engineering and construction contractor for oil and gas companies employs about 700 people in Norway and the U.K. "We are not the only ones who will have to make cuts. The industry has come to a stop. I understand that oil companies have to make some adjustments, but with the oil price currently around $74 a barrel it is strange that they do not see [investment] opportunities," Mikaelsen reportedly said.
Acergy's second-quarter revenue tumbled to $525.5 million from $705.6 million in the same quarter of 2008 and said at that time its business environment was challenging, short-term visibility poor and clients were delaying projects.
Company Web site: www.acergy-group.com
-By Elizabeth Adams, Dow Jones Newswires; +44 (0) 20 7842 9386; elizabeth.adams@dowjones.com