The operator of Sullom Voe Terminal has warned it expects to axe more than 500 jobs in its North Sea oil division.
EnQuest announced its intention to save around £241 million following the fall in oil prices, which reached their lowest price in 20 years.
The news follows warnings from Oil and Gas UK, the industry body, which announced on Tuesday the North Sea sector could suffer 30,000 job losses due to falling prices and the fallout from Covid-19.
EnQuest is reported to have begun a six-week consultation with employees over the possible redundancies.
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.”
EnQuest has not made any comments about where the jobs cuts would fall.
The company has interests in several North Sea oil fields, as well as Sullom Voe Terminal.
The terminal receives around a third of the EnQuest’s UK North Sea production.