The letter states that WGPSN plans to cut back its workforce and review pay and benefit terms for the remaining employees with changes coming into effect in June.

In a letter to staff, the company’s Shell ISC business manager Stuart Creaney, said: “Previously in communication from Dave Stewart, managing director of WGPSN, he talked about how a decline in production, increased costs and reduced production efficiency will further weaken the importance of the North Sea and its overall competitiveness.

“These precarious market conditions, which are evident as a result of uncertain oil and gas prices, and feedback from our customers have meant that WGPSN was required to assess financial measures to enable the company to compete successfully in the market place.

“WGPSN reviewed any supplementary payments and benefits made above OCPA (Offshore Contractors Partnership Agreement) and determined that these payments are unaligned with current and predicted market conditions.

“As a consequence any supplementary payments and benefits made above OCPA are proposed to be removed with effect from June 18 2016.

“For disciplines not recognised under OCPA we propose to align your salary, or rate, to a sustainable market rate level and other allowances or benefits will be aligned with OCPA.

“In addition, as we continue with decommissioning across the Brent field, including the removal of Brent Delta, it is proposed that there will be a reduction of resources required to support the planned workscope delivery.

“As a result, this places your position at risk of redundancy.”

No further information on the number of positions affected has been released but it is understood the trade unions are currently in talks with Wood Group during the 45 day consultation period.