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.”
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