Coronavirus: EnQuest warns of more than 500 North Sea redundancies

EnQuest said operational activity was being cut back

An oil and gas operator has warned it expects to make about 530 redundancies in its North Sea operation.

EnQuest said it wanted to make savings of $300m (£241m), following the slump in demand for oil coupled with falling prices.

A consultation period on the plans is under way.

Industry body Oil and Gas UK had warned on Tuesday it expected as many as 30,000 jobs to go as a result of the coronavirus pandemic.

EnQuest confirmed it had begun a six-week consultation with employees as it took "decisive action to manage the business in the current challenging economic environment".

• 'Thousands' of oil and gas jobs under threat

• North Sea producer announces major spending cuts

The company said: "Given the prevailing low oil price and global demand, the group has reviewed each of its assets and related spending plans.

"This reduction in operational activity will inevitably lead to resource reductions, although EnQuest is seeking to keep this to a minimum.

"EnQuest expects to reduce the number of roles by 530."

Meanwhile, Ithaca Energy - one of the biggest North Sea operators - plans to halve its capital spend to $125m (£100m) this year.

Ithica acquired Chevron North Sea assets last year

It also plans to cut operational costs by 16% to $370m (£298m).

The company expanded last year, with the $2bn (£1.61bn) acquisition of Chevron North Sea.

It has been pumping 75,000 barrels of oil per day, but plans to cut that back by 10%.