BP Reduces Norwegian Workforce

BP has re-structured it Norwegian operations as a result of a comprehensive study launched last fall to identify measures to improve value creation and cost effectiveness. In addition it reflects lower activity.

Several factors have triggered the need to reshape the BP organization in Norway; unsuccessful exploration, delayed developments, rising costs and tougher global competition for resources.

To remain a competitive and sustainable business a reduction in the lifting costs of 30% is necessary. This will be achieved through different efficiency measures e.g. within drilling, production, modifications and maintenance; this includes more focused performance management and change in work processes. Unfortunately this is not achievable without reducing the number of staff and contractors. When designing the new organization the following was taken in to consideration; future activities, changes to work processes and scope of work.

By end of 2003 total onshore positions will be reduced from 456 to 282, a reduction of 174 posts of which the majority is contractors. The reduction figure includes staff to transfer to the new operator of the Gyda field and expatriates leaving Norway. The exact split will be finalized by end of June. The offshore organization will be due for a separate process later this year. Managing Director Scott Kerr regrets that the company has to take such drastic measures to overcome the challenges. “This is a difficult time for all in BP Norge, but I am confident that our decision is based on very thorough evaluations including active and constructive staff consultation process. We have sharpened our efforts on safety even more and all measures will be risk and impact analyzed before implemented” says Scott Kerr, who is committed to ensure that every one is treated with respect and dignity.

BP remains committed to Norway through significant investments in the Valhall field, Ula field and as partner in Ormen Lange and work to mature the Skarv field for development. The company looks forward to the 18th license round and see this as an opportunity to secure quality acreage to build on.