A further 56 jobs are to go at the Corrib gas pipeline in Co Mayo, with Shell blaming ongoing protests for the cutbacks.
According to the company, protests were obstructing non-pipeline work, which led to the decision to reduce staff. However, the firm has been ordered by the Minister for the Marine, Noel Dempsey, to halt work on the pipeline until an independent safety review of the project can be carried out.
The affected workers are employed by Sicim-Roadbridge, a civil engineering contractor, which currently employs 64 people at the Pullathomas Road access, Glengad, Rossport and the Bellanaboy terminal site. Eight security personnel will remain at the site to keep up security.
Describing the actions of the protesters as "regrettable", Mark Carrigy, operations manager for Shell E&P Ireland, appealed to them to halt their action.
Shell also blamed the protests for the decision to let 35 sub-contractor staff go earlier this week. The employees in question were mainly engineers, surveyors, and inshore vessel operators.
The Corrib pipeline has been the subject of controversy in recent weeks, with five protesters landing in jail after they breached an injunction obtained by Shell prohibiting them from obstructing the pipeline's construction.
The Green Party has called on Shell to withdraw its injunction against the protesters and to suspend all work on the pipeline until the independent safety review has been completed.
Representatives from the party visited the five men who were imprisoned for refusing to end their protest against the Mayo pipeline. "They are determined to continue their protest against Shell," said Green Party chairman John Gormley. "They are in jail on a point of principle and emphasised that the safety issue is their primary focus."
The five men told part representatives that they would purge their contempt when the petroleum company When talking to the five men today about how they could purge their contempt when Shell withdrew its injunction.
The Minister's decision to order the safety review was welcomed by the jailed protesters. He has also established a high-level technical group to monitor the €900 million project, which will be independent of the Petroleum Affairs Division (PAD) and is to advise the Minister on the safety review.
Last week, Mr Dempsey also wrote to Shell to inform them that they had breached consents issued for the onshore pipeline. These breaches involve the stringing and welding of up to 3km of onshore pipeline between a crossing at Sruwadaccon Bay in inner Broadhaven Bay and the terminal site at Bellanaboy Bridge.
It was reported today that Mr Dempsey is to take legal advice following Shell's response. Although the company refused to publish details of its response, it has acknowledged a "technical breach" of consents.
It is understood that Shell had applied last May for permission to weld the pipeline, but although the application was acknowledged by the department, it was never approved.