Oil Sector Threatens Inactivity Helicopter Service Firms

 Oil Sector Threatens  Inactivity Helicopter Service Firms

The slump in the price of crude oil has put helicopter companies operating in Nigeria’s oil and gas sector on a collision course with their employees, Daily Trust reports.

Following the economic downturn, helicopter companies are finding it increasingly difficult to stay afloat and meet their obligations especially to workers. They are constrained by the reduced operations as most of their clients have either cancelled their contracts outright or reduced them. This, according to sources, is responsible for the unending battle between two major helicopter companies – Caverton and Bristow – both providing offshore services for the oil and gas companies and their respective workers.

An official of one of the helicopter companies who gave insight into the developments in the oil and gas industry said, “The fact of the matter is most of the oil companies that are our biggest clients have reduced their operations because of the fall in the price of crude oil. The implication of the fall is their earnings have reduced significantly. So most of them had to review their contracts with the airlines downward or cancelled some outright.”

 

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