One in six oil and gas workers expected to be laid off this year

Oil and gas operators in the North Sea are preparing to lay off a sixth of their UK workforce this year, a new survey for the Aberdeen & Grampian Chamber of Commerce has revealed.

The cut in staff will be up from the 15 per cent cut seen in the last year, but could be nearing “the bottom of the curve”, the survey suggested.

Three quarters of contractors in the North Sea said they were less optimistic about their prospects than 12 months ago.

However half of respondents said they were limited by skills shortages.

Aberdeen & Grampian Chamber of Commerce chief executive Russell Borthwick said the marginal improvement in confidence was “perhaps a shard of light”.

In February industry body Oil & Gas UK warned offshore investment could fall to £1bn this year, down from a recent average of £8bn.