Shell cuts more jobs in UK's North Sea oil industry

Royal Dutch Shell is set to cut another 250 jobs from its UK North Sea oil and gas business in 2015, the company said on Thursday.

The reduction follows a package of tax cuts from the UK government that was supposed to attract businesses to the industry.

"Shell UK plans to reduce the number of staff and agency contractors who support the company's UK North Sea operations by at least 250 in 2015," Shell said in a statement.

Shell previously announced 250 job cuts in August 2014 and the latest round of cuts follows job losses at a series of companies with operations in the North Sea, including BP and Chevron.

Earlier, Taqa said it planned to cut about 100 jobs because of the "challenging" time facing the industry.

Oil prices have fallen by more than half since June 2014, amid a global supply glut and falling demand from developed economies. Along with high costs and high taxes, falling prices have contributed to declining investment in the UK's oil and gas sector.

The UK government unveiled a package of tax cuts and investment breaks for companies operating in the North Sea oil industry, which were largely welcomed by the industry.

Britain's North Sea oil and gas sector employs around 400,000 people in total.