Oil Storage Tanks, Sullom Voe Terminal (Credit: David Dixon, Creative Commons Attribution-Share Alike 2.0)

Dozens of jobs are at risk at the Sullom Voe oil terminal in Shetland as operator EnQuest begins consulting staff ...

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Dozens of jobs are at risk at the Sullom Voe oil terminal in Shetland as operator EnQuest begins consulting staff on voluntary redundancies. The company is seeking to cut around 30 roles at the site, describing the move as part of efforts to secure a long‑term and sustainable future for the terminal. EnQuest, which took over the facility from BP in 2017, has said it intends to achieve the reduction through a voluntary process rather than compulsory lay‑offs.

Unite the Union has warned the proposed cuts could amount to a significant proportion of the current workforce. The union has raised concerns about the potential scale of the reduction and signalled that it will strongly oppose any shift from voluntary to compulsory redundancies. It has also stressed its commitment to fighting for all jobs at Sullom Voe.

EnQuest’s case for restructuring

EnQuest has framed the consultation as part of an ongoing transformation programme at Sullom Voe Terminal. The company argues that restructuring is necessary to support continued operations into the 2030s, given declining oil throughput and wider pressures in the North Sea sector. Its position is that a leaner workforce is essential to keeping the terminal commercially viable in the long term.

This latest move follows earlier rounds of job losses linked to cost‑cutting and market conditions at Sullom Voe over recent years. The pattern mirrors challenges faced by many mature oil and gas sites as fields age, investment priorities shift and regulatory expectations evolve. For EnQuest, the current consultation is presented as another step in adapting the terminal to that changing landscape.

The union’s warning about the potential scale of the cuts reflects wider anxieties in Shetland about the impact on workers, families and the local economy. Research commissioned by policymakers has suggested that, without a managed transition to new forms of energy production at Sullom Voe, the islands could face substantial long‑term job losses and a hit to economic output. Against that backdrop, further reductions at the terminal are seen as part of a broader risk of unmanaged decline.

Local representatives have previously voiced unease about the future of Sullom Voe as successive restructurings take effect. With the workforce already reduced compared with historic levels, additional cuts raise questions over how far the terminal can shrink while still maintaining safe operations and meaningful employment. For unions and community leaders, the priority remains preserving skilled roles on the islands and avoiding a slow erosion of opportunities.

Pressure to pivot to low‑carbon fuels

An EnQuest spokesperson: “EnQuest confirms that it has begun a consultation process at the Sullom Voe Terminal (SVT), with the aim of achieving the required workforce reduction through a voluntary process.

“This process is aligned with the ongoing transformation of SVT, which has been designed to secure a long-term and sustainable future for the terminal, enabling continued operations until at least 2036.”

Policy experts have argued that a proactive shift towards low‑carbon fuel production at Sullom Voe could significantly mitigate projected job losses. Modelling for government and industry partners indicates that early backing for projects aimed at repurposing the terminal for cleaner energy could sustain a large share of existing employment into the 2030s. Under scenarios where such investment is delayed or absent, the projected loss of jobs across Shetland is markedly higher.

For Shetland, the transition debate is not only about retaining work but about reshaping Sullom Voe from a fossil‑fuel export hub into an energy centre aligned with net‑zero goals. The current redundancy consultation therefore sits at a critical juncture: a near‑term restructuring which unions fear could herald deeper decline unless matched by concrete plans for a future beyond oil. How government, industry and the community respond will help determine whether Sullom Voe’s next chapter is one of contraction or renewal.

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