A SCOTTISH oil and gas decommissioning company is set to close down with the loss of around 20 jobs.
Cesscon Decom, a Livingston-based firm that works on the dismantling of old oil and gas rigs, is facing having its assets sold off and bank accounts frozen, according to reports in The Scotsman.
Andrew Bell, Scotland organiser for the GMB trade union, said employees had not been informed about the impending closure, but that none had been paid since May.
According to Companies House, Cesscon Decom is controlled by another firm, called Cesscon Ltd, which has missed the deadline to file its confirmation statement (previously known as an annual return).
Lee Hanlon, a director of Cesscon, was quoted by The Scotsman as having told workers in an email that the firm had “received a petition to liquidate Cesscon Decom Ltd” and that they were facing “the winding up of the company with all bank accounts frozen and all assets sold”.
Hanlon said that a lack of decommissioning work and the postponement of projects had put the company “in this very difficult position which has now been taken out of our hands”.
Andrew Bell, GMB Scotland organiser, said: “The company’s absolute failure to inform workers of this escalating crisis is beyond the pale.
“Staff have not been paid since May and we are still working to establish if the company has paid its pension contributions.”
He added: “Our members urgently need clarity and support while taxpayers deserve to know exactly how much has been spent supporting this company and its plans.
“Four years ago, we were told it would be at the forefront of decommissioning oil and gas facilities in Scotland.
“Today, the gates are shut, workers have not been told why and taxpayers have not been told how much.”
Cesscon Decom was given a £572,000 loan by Scottish Enterprise – a government agency – in 2021, and Fife Council confirmed that around £1.5 million had been spent building the site in Methil which was then leased to the company.
Pamela Stevenson, [[Fife]] Council's service manager for economic development, said: "A total of £772,744 was provided through the Vacant and Derelict Land Fund (VDLF) and £745,000 through the Decommissioning Fund, both supported by the Scottish Government.
"These funds were used to support site remediation and preparation works. The land, owned by Scottish Enterprise, was subsequently leased to the company on commercial terms.
"The improvements made to the site remain in place and continue to represent a valuable asset for future use by other operators at the energy park."
A Scottish Government spokesperson said: “Funding was provided to Fife Council through the Vacant and Derelict Land Fund and the Decommissioning Challenge Fund to support the regeneration of a derelict site into an industrial unit.
“As set out by Fife Council, this land, which is owned by Scottish Enterprise, was leased to Cesscon Decom on commercial terms. The improvements made to the site remain in place and continue to represent a valuable asset for future use by other operators at the energy park."
