Freeport-McMoRan Oil & Gas LLC (FM O&G), a subsidiary of Freeport-McMoRan Inc., (NYSE: FCX) will lay off 170 workers in its Houston offices, according to data from the Texas Workforce Commission (TWC).
Due to low oil prices and weak global economic conditions, the company, which has headquarters in Phoenix, stated it would “curtail operations,” resulting in a total of 160 permanent layoffs at two Houston office locations. The layoffs will begin July 1 and end July 14. The company will offer severance benefits and transition programs to those former employees.
With significant oil production facilities and growth potential in the Deepwater GOM and oil production facilities in California, 86 percent of FCX’s oil and gas reserves were from oil and natural gas liquids (NGL) during 1Q 2016, according to the company’s first-quarter results.
The quarterly report also stated that FM O&G took on a near-term deferral of exploration and production (E&P) activities as a means to reduce oil and gas capital expenditures (CAPEX). Additionally, two drillships were fully idled while another drillship was used for completion operations, one operation that is expected to be completed this month. The three drillships will then remain idled. About 90 percent of the company’s capital budget will be directed to the Gulf of Mexico.
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