Petro Matad Cuts Salaries

Petro Matad Cuts Salaries
Mongolian oil explorer Petro Matad Limited has implemented salary cost saving measures.

Mongolian oil explorer Petro Matad Limited revealed Monday that it has implemented salary cost saving measures.

According to the company, all executive directors, non-executive directors and other senior managers have agreed to take salary cuts averaging 50 percent, backdated to the start of the second quarter of this year. Petro Matad’s professional advisers have also agreed to reduce fees by up to 45 percent, the company outlined.

The salary cuts were made in order to ensure that Petro Matad’s current financial resources can sustain the organization through the processing of its Block XX exploitation license application, according to the company, which also highlighted that it recognized the impact the pandemic has had on global financial markets.

Following the cuts, the overhead costs of Petro Matad have been halved, the company revealed. Petro Matad said further cost cutting measures have been identified and can be executed “if market conditions make this necessary”.

“The combination of the global pandemic, its impact upon financial markets and the significant reduction in the oil price make these testing times for all those that operate in our industry,” Petro Matad CEO Mike Buck said in a company statement.

“However, Petro Matad is determined to weather the storm, pursue the permits we need and prepare for the next phase of our activities,” he added.

“The changes we have made to our cost base are prudent steps to take at this time and the company is highly appreciative of the flexibility and commitment demonstrated by staff, contractors and advisers,” Buck continued.

Petro Matad, which was established in July 2005, is focused on oil exploration, as well as potential future development and production, in Mongolia, according to its website. Buck, who is a geologist/geophysicist by training, joined the oil industry back in 1979.

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