Devon Closes Houston Office in Consolidation Move

Devon Energy will close its Houston office in a move to consolidate its U.S. personnel into a single operations group at the company's headquarters in Oklahoma City.

Operational responsibilities for the company's South Texas, East Texas and Louisiana operations will be based in Oklahoma City following the consolidation, the company said in a statement on Thursday.

Consolidating its U.S. operations will save Devon approximately $80 million per year by reducing its general and administrative costs and capitalized personnel costs. Reorganization charges are estimated at approximately $125 million, with $100 million estimated to be incurred in the first half of next year. In aggregate, roughly 20 percent of the total restructuring charges are non-cash.

As part of the consolidation, the company expects to relocate a number of employees from Houston to Oklahoma City. The initiative is expected to be substantially complete by the end of first quarter 2013.

"Consolidating our U.S. operations will improve our ability to quickly shift the focus of our workforce between project areas as economic conditions dictate," said Dave Hager, executive vice president of exploration and production, in a press statement. "In addition, this move will improve the sharing of best practices and enhance overall operational efficiency."

Devon has 500 employees in Houston, a company spokesperson told Rigzone in an email statement. The company is still very early in the process of closing its Houston office, and does not have a count of how many will stay with Devon and make the move to Oklahoma City.

The company is still operating all of its assets, and will need hundreds of its employees from Houston.

"However, it is too early to have an exact figure on many of them will move to Oklahoma City," the spokesperson said.

Employees that opt to stay will be given severance packages.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Project Controls Specialist
Expertise: Project Management
Location: Minneapolis
Quality Assurance and Training Specialist Job
Expertise: HR - General|HR - Trainer / Instructor|Risk Management
Location: Minneapolis, MN
Project Manager
Expertise: Engineering Manager|Project Engineer
Location: Columbia, SC
search for more jobs

Brent Crude Oil : $50.79/BBL 1.30%
Light Crude Oil : $49.96/BBL 1.10%
Natural Gas : $2.77/MMBtu 2.12%
Updated in last 24 hours