Statoil Cuts 250 Jobs, Mostly in HSE

Statoil ASA will be cutting 250 positions from its workforce, the company confirmed Tuesday in a phone call to Rigzone.

Statoil spokesperson Ola Anders Skauby told Rigzone the 250 positions are not new job cuts, rather part of the previously announced 1,100 to 1,500 workforce reductions planned for the remainder of 2016. The plan is expected to save the company $1.7 billion.

The cuts will occur in the finance and control, safety, security and sustainability parts of the organization, said Skauby.

Oil and gas companies have been slashing capital expenditures (CAPEX) and cutting jobs for two years now as the industry continues to adjust to the low oil price environment.

Statoil is one of many oil and gas companies on hand at the ONS oil conference in Stavanger, Norway this week. Reuters reported that during the conference, Statoil’s exploration chief Tim Dodson, said the industry is heading for a supply crunch in coming decades. Dodson said the current level of investments in the oil and gas sector coupled with the decline rates of existing fields signify a supply gap that will open up by 2040.

“If we stand still, the world will just not have enough energy to fuel its growth,” Dodson said.