Statoil Cut 1,000 Jobs during 2Q

Norway's Statoil confirmed Friday that it reduced its headcount by approximately 1,000 employees during the second quarter as part of a cost-reduction program that could see as many as 1,400 people lose their jobs at the company.

"We continue progressing our programs to reduce cost and improve capital efficiency. In the quarter, we have announced a potential to reduce between 1,100 and 1,400 positions. Reductions of around 1000 positions in our staffs and support services are already implemented. We have also established six specific high-impact projects addressing technical efficiency across the company, and we are now executing the first wave. We are on track, and will provide an updated status when we report our results for the full year," Statoil CEO Helge Lund said in the company's 2Q results announcement.

The news of redundancies comes weeks after Aker Solutions, a key supplier to Statoil, reported that it is trying to find roles for more than 200 of its employees amid a slowdown in Norway's offshore maintenance and modifications market.

During the quarter Statoil made progress with its Johan Sverdrup field development project, including the award of a letter of intent for two steel jackets for the first phase of development. The firm also saw the CLOV deep-water development come on stream in Angola, which was in line with the original project schedule.

The firm made a high-impact discovery offshore Tanzania at the Piri field, which it described as the world's largest gas discovery so far in 2014.

Meanwhile, Statoil and Thailand's PTTEP completed an agreement to divide their interests in Canadian oil sands, while the firm also completed the farm downs of its Shah Deniz and South Caucasus Pipeline assets.

The firm's production during the quarter was 1.8 million barrels of oil equivalent per day, which was down nine percent compared to 2Q 2013. Statoil said that the start up and ramp up of new fields such as Skarv in Norway, Marcellus and Eagle Ford in the US and the PSVM and CLOV developments in Angola contributed positively to the production, but that this increase was offset by divestments and other facts such as seasonal effects and gas production optimization.

Statoil's net income for 2Q 2014 was $1.92 billion, compared with $688 million in 2Q 2013.

 

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