Oil and gas sector - IR35

[eazy]

Spirit Energy

Spirit Energy - Individual assessments ongoing
Premier Oil - Individual assessments - Contracts & Management positions inside, engineering role reviews ongoing

[sfr]

Petrofac pointing to outside. Anyone from Lead down, outside. Contractors above Lead, inside.

Wood contractors given individual assessment outcomes, mostly outside. Contractual changes to be instituted post April 2020.
However it would appear that any embedded Wood contractors within organisations where they organisation has deemed inside, they are to be inside (PAYE) too.

[eek]

Wood contractors given individual assessment outcomes, mostly outside. Contractual changes to be instituted post April 2020.
However it would appear that any embedded Wood contractors within organisations where they organisation has deemed inside, they are to be inside (PAYE) too.

That's probably unavoidable - but just shows how random this is - project for client A, safely outside, risk adverse client B inside..

[eazy]

TAQA

TAQA Oil & Gas - Contractors including third party embedded within the organisation are PAYE as well.

[eazy]

Oil & Gas Sector Rate Cuts

Looks like rate cuts are on the way due to Covid-19 & oil price crash in addition to job losses & furloughs

Petrofac : 15-20% and 20 hours a week
Wood : Staff 10% salary reduction, no news on contractors
Worley : have but not sure on the percentage
Aker : Contractors 15 - 20%, Staff 4 weeks unpaid leave before year end

Anyone know what others companies in the O&G sector are planning or carried out?

[dsc]

Holy crap that was quick, was expecting O&G being hit, but not so soon. On the other hand it wasn't in a great state to begin with...

[sludgesurfer]

It's grim for sure. I'd heard of Worley laying off some staff, not heard anything about contractor rate cuts although I guess it won't be long.

Maersk drilling laying off 300 staff. I see Enquest are decommissioning Thistle and Heather - I'm sure there will be others.

I'm benched from one client until restrictions are eased with one other continuing unaffected (so far).

Whilst the industry has made significant opex reductions in recent years, nothing works at these prices. They'll slash capex, cut rates and lay off staff. Most operators are protected to an extend with their hedges but when prices remain low into late this year and into next, covenants will be breached and bankrupcies appear likely. I see Diamond Offshore just filed for Chapter 11 with debts of $2.6bn.

Be interested to see how long Shell and BP's divvy holds up....

[dsc]

"They'll slash capex, cut rates and lay off staff. "

That is exactly what I was thinking. I remember over ten years ago when oil prices were really low, they were changing offshore rotas to make staff work more, or they were free to walk. Most of course excepted even though it was a pay cut. In the current climate they'll be lucky to still have a job :/

Also lets not forget how huge O&G is, I'm worried this will have a massive knock on effect on a lot of things.

[sludgesurfer]

"They'll slash capex, cut rates and lay off staff. "

That is exactly what I was thinking. I remember over ten years ago when oil prices were really low, they were changing offshore rotas to make staff work more, or they were free to walk. Most of course excepted even though it was a pay cut. In the current climate they'll be lucky to still have a job :/

Also lets not forget how huge O&G is, I'm worried this will have a massive knock on effect on a lot of things.

This comes just as most of the NS operators had moved from an equal time rota to 2/3 or similar.

I know a bunch of guys working offshore overseas who's rota has flipped from 4/4 to 2/6 as they are now expected to quarantine in a hotel for 2 weeks before going offshore for their 4 week trip.

For most, the times hadn't "got good" again since the last down turn so there's a lot less fat to trim this time round.

[AndrewK]

Looks like rate cuts are on the way due to Covid-19 & oil price crash in addition to job losses & furloughs

Petrofac : 15-20% and 20 hours a week
Wood : Staff 10% salary reduction, no news on contractors
Worley : have but not sure on the percentage
Aker : Contractors 15 - 20%, Staff 4 weeks unpaid leave before year end

Anyone know what others companies in the O&G sector are planning or carried out?

There are some rumours that BP is planning 15% rate cut around June.
We will see.