In view of the continued challenging market conditions for deepwater developments, Maersk Oil announced plans to reduce its organizations in Angola and the United States Thursday. The move will result in the closure of the company’s Houston office and a reduction of the Luanda team, impacting approximately 100 staff positions in total across the two sites.
The decision follows extensive and ongoing work to reduce capital expenditures (CAPEX) and improve returns of the un-sanctioned Chissonga project in Angola. Options include a future project developed jointly with other hydrocarbon discoveries in the same region.
”Chissonga, like many deepwater projects in our industry, remains economically challenged in the current market environment. Maersk Oil remains committed to the Chissonga project and we have evaluated multiple options to commercialize these resources in the best interests of our partners and the Angolan authorities. In addition to work to reduce overall project costs we are also looking at options for a possible joint development,” said Maersk Oil’s Chief Operating Officer Gretchen Watkins.
“A further restructuring of the Chissonga project team is a necessary step on the path to securing a future development project for Maersk Oil in Angola. This difficult decision does not diminish our keenness to pursue the Chissonga project sanction in due course, provided we can achieve an attractive return on our investment,” she continued.
Of the approx. 100 employees and contractors impacted by the changes ca. 60 currently sit in Houston and a further ca. 40 in Luanda. The changes will transfer some responsibilities for the project to Maersk Oil’s Copenhagen headquarters and leave an office of 18 people in Luanda continuing the Chissonga project maturation.
“We recognize that this is an unsettling time for our people, to whom we offer full support throughout this process. During this difficult time, the safety and welfare of our teams and our focus on safe and incident-free operations remain our top priority,” Watkins said.
Maersk Oil’s non-operated activities in the Gulf of Mexico, currently also run from Houston, will be transferred to its Copenhagen headquarters in the coming months.
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