EconomyMarkets

Equinor to cut jobs in U.S., Canada and UK following oil price fall By Reuters

© Reuters. FILE PHOTO: Equinor’s logo is seen next to the company’s headquarters in Stavanger

OSLO (Reuters) – Norwegian oil and gas firm Equinor is set to cut jobs significantly in the United States, Canada and Britain to adjust to a fall in oil prices, a company spokesman said on Wednesday.

The group plans to cut employee numbers in those countries by about 20% and contractor numbers by around half to ensure profitability at lower oil prices, the spokesman told Reuters, adding that the targets were communicated internally on Tuesday.

Equinor will also not drill any new unconventional wells this year in the United States, where it has acreage in the Bakken and Marcellus shale formations, he said.

The plans, which the company has been working on since the spring, would not involve asset sales, he added.

“There is no change in our acreage portfolio. The action that we are taking now is to ensure that our business is profitable in a lower price scenario,” the spokesman said.

Some staff cuts would come as a result of the sale of Equinor’s Eagle Ford assets last year, he said.

The spokesman said he could not specify the number of employees and contractors that could be affected, but said Equinor’s U.S. office was the second largest after Norway.

Equinor had 21,000 employees at the end of 2019.

The majority state-owned firm came under intense scrutiny in the Norwegian media earlier this year over mounting losses in the United States, with Norway’s Oil and Energy Minister Tina Bru demanding more transparency on foreign investments.

Brent crude () price plunged to a more than two-decade low and U.S. oil prices turned negative in April due a sharp fall in demand during the COVID-19 pandemic.

Oil prices have since recovered and are holding near five-month highs as U.S. producers shut most of their offshore Gulf of Mexico output ahead of Hurricane Laura, and following a drop in inventories.[O/R]

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close