Semco: Statoil cost reduction efforts hit suppliers hard

Statoil's decision to cut one third of the company's costs on supplier contracts will have a severe impact on the companies servicing Statoil, says Semco Maritime.

Photo: Øyvind Hagen - Statoil

Statoil's decision to cut 30 percent of costs related to supplier contracts in maintenance and upgrades will have severe consequences for the industry as a whole and particularly for major operators in M&M - Maintenance & Modifications, says Semco Maritime.

According to Statoil, technical requirements have pushed the price up, and the same thing has happened in terms of heavier, increasingly bureaucratic work processes. Projects have grown more cost-heavy and time-consuming, while the oil price has been stagnating and wages increased by four percent annually.

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