Greka Warns of Cost Base Reduction in 2016

Greka Drilling Limited has warned that it will take actions to reduce its cost base in 2016 as a response to the lower oil price environment.

The company’s chairman and chief executive Randeep S. Grewal outlined in a Greka Drilling statement that the firm was not immune to the crisis and said that the business would strive to create a “primarily variable cost structure, strong operational optionality and [a] diverse client base”. Despite its plan to decrease costs, the company has stated that it is focusing on “retaining talent through the first half of 2016”.

Greka drilled 62 wells in 2015, marking a 38 percent year on year increase, with 53 of those wells located in China. The remaining nine wells were drilled in India and the firm plans to continue discussions with Essar about further drilling in the country’s Raniganj East block in West Bengal.

Randeep S. Grewal, chairman and chief executive of Greka Drilling, commented in a company statement:

“Greka Drilling is not immune to the crisis that has hit the oil and gas industry. Thus, we continue to focus on taking actions to reduce our fixed cost base during the industry downturn and push towards a business that has a primarily variable cost structure, strong operational optionality and diverse client base.”



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

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.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  OMV Petrom, Hunt Oil Start Experimenta... (Dec 9)
 -  Waitsia JV Approves 2017 Development A... (Dec 9)
 -  SapuraKencana: Short-Term Industry Out... (Dec 8)
 -  Oil Flows From Otakikpo Marginal Field... (Dec 8)
 -  Plexus: More Cuts Expected (Dec 8)


Most Popular Articles

From the Career Center
Jobs that may interest you
Senior Accounting Analyst Job
Expertise: Accounting|Budget / Cost Control|Financial Analyst
Location: Denver, CO
 
Oil and Gas job opportunity for "Big 4" Trained Auditors
Expertise: Accounting
Location: Houston, TX
 
Omron/Amphion Driller
Expertise: Derrickman|Driller|Motorman
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $54.33/BBL 0.81%
Light Crude Oil : $51.5/BBL 1.29%
Natural Gas : $3.75/MMBtu 1.35%
Updated in last 24 hours