Aberdeen-based Wood Group PSN said it plans to reduce the rates paid to a third of its UK-based limited company contractors by an average of 9 per cent “in response to continuing cost and efficiency challenges affecting the UK North Sea oil & gas sector.”

James Crawford, managing director of Wood Group PSN in the UK and Africa, said: “This is not a decision we have taken lightly, but we believe it is the right one to proactively meet the continuing cost and resourcing challenges affecting the UK North Sea oil and gas sector …

“This adjustment to the rates we pay our UK contractors ensures we continue to be competitive within the marketplace.

“We highly value our contractors and this measure will allow us to sustain our relationship with these talented people, whilst taking appropriate measures to improve efficiency and reduce cost for our customers.”