U.S. oil and gas company Chevron is looking to reduce its workforce in Thailand.
Reuters on Monday cited a company official who said that the cuts would enable the company to keep doing business in the Southeast Asian country.
The San Ramon, California-based oil firm, Reuters writes, has plans to lay off 800 people this year, in order to cut costs at the time of low oil prices, with the aim to save as much as $500 million.
Offshore Energy Today has reached out to Chevron, seeking confirmation of the reports.
Chevron’s spokesperson confirmed in an e-mail to Offshore Energy Today that, in response to the prolonged low oil price environment and lower gas demand, Chevron Thailand Exploration and Production has conducted a review of its operating model and organizational structure in order to ‘ensure a sustainable business over the long term’.
As a result of this review, Chevron Thailand said it would reduce its total workforce by about 20%, or approximately 800 positions, and that the reduction would include Thai national employees and contractors. In addition, the spokesperson said, Chevron Thailand has reduced expatriate employees by over 50% and released almost all of its expatriate contractors.
In the Gulf of Thailand, Chevron has working interests in multiple offshore blocks. Operated interests are in the Pattani Basin, with ownership ranging from 35 percent to 80 percent.
According to Chevron’s 2015 annual report, its net average daily production in the country last year was 66,000 barrels of crude oil and condensate and 1.0 billion cubic feet of natural gas. The company says it supplies about 40 percent of the country’s natural gas demand.
The article has been updated with Chevron’s statement.
Offshore Energy Today Staff