Oil service sector faces more job cuts, rig count cuts: FMC

[OSLO] The global oil service industry is not yet done cutting jobs and the US shale rig count will continue to fall further as energy firms adjust to lower oil prices, John Gremp, the CEO of oilfield service firm FMC Technologies said.

Smaller, cash-strapped service firms, particularly in the US shale industry are the most likely takeover targets in the given climate but the oil service sector is already fairly well consolidated, Mr Gremp told Reuters in an interview on Thursday.

"The US rig count has been dropping 100 rigs a week and it's not yet done dropping to match the stated capex reductions by shale players, which is 45 per cent," Mr Gremp said.

Mr Gremp added that in the offshore segment, North Sea developments, very large West African deepwater projects and Brazilian work are at the biggest risk of delay or cancellation while the Gulf of Mexico is among the least vulnerable.

REUTERS