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2015-10-27 18:55:00

MAERSK OIL CUTS 12%

MAERSK OIL CUTS 12%

Maersk Oil has announced its intention to implement workforce reductions amounting to 10-12% of roles across its business.

The move, part of the company's drive to reduce operating costs by 20% by the end of 2016, follows an extensive internal review of business activities and continued low oil prices.

The impacts will see a reduction in the number of employee and contractor roles in a range of Maersk Oil business locations, as well as the company's headquarters. It brings the total number of positions taken out of the organisation during 2015 to approximately 1,250.

"These are difficult decisions for any business and my immediate concern is for the welfare of those affected directly by today's news," said Maersk Oil CEO Jakob Thomasen.

"We are operating in a materially changed oil price environment and have taken necessary decisions to reduce activity levels through 2015, and ensure we focus where we can see adequate returns from our most robust projects. This approach has seen us sanction mega-projects like Johan Sverdrup and Culzean during the year. We remain focused on longer term growth opportunities, which play to our technical strengths, and the continued safety of all our people and assets."

"We expect the pressure to continue into 2016 and we must remain cost-focused to grow in this market. I commend our people for the improvements in our operating performance whilst we have been managing down costs across the organisation," he said.

Business Units in Qatar and Norway will implement reductions in line with the 10-12% range, with slightly lower levels in the Danish operations, in Kazakhstan and in the company's Copenhagen headquarters.

In the UK, the business has already outlined plans to reduce headcount by around 220 positions. This is linked to the retirement of the Janice asset and changes to the offshore rotation. Meanwhile 60 roles in Angola and the United States associated with delays in the Chissonga project were announced last month. Both actions fall within the scope of today's communication.

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Maersk Oil is an international oil and gas company with operated production of 550,000 barrels of oil equivalent per day. Our production comes from Denmark, the UK, Qatar, Kazakhstan, the US Gulf of Mexico, Algeria and Brazil. Exploration activities are on-going in Angola, Norway, Greenland, Kurdistan Region of Iraq and in the producing countries. Turning complex and challenging fields into commercial successes has been the cornerstone of Maersk Oil’s business since 1962. Maersk Oil focuses on pioneering technologies and harnessing talent to continue to operate safely and successfully, creating value for partners and host governments. 

Maersk Oil is a fully-owned subsidiary of the global conglomerate, the Maersk Group.

maersk.com

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