Oil and gas company DEA Norge is set to cut by half the number of employees in Norway.
According to Offshore.no, a Norwegian language website covering the country’s oil and gas industry, DEA Norge plans to let go 90 workers, from a total of 180 by the summer of 2017.
The news website, citing other Norwegian sources, said that the company, part of German DEA Group, is making the cuts due to two factors: low oil prices and synergies from the acquisition of E.ON E&P Norge in December 2015.
Reportedly, DEA, which has offices in Oslo and Stavanger, is planning to close down its Oslo offices.
To remind, DEA Norge in May formally completed the merger with E.ON, and appointed Hans-Hermann Andreae who will lead the company from the new headquarters in Norway.
Offshore Energy Today has reached out to DEA Norge seeking confirmation of the reported downsizing plans.
Responding, the company’s spokesman Kjetil Hertvik said: “I can confirm the Norwegian media reports. After the acquisition of E.ON E&P, the Ministry of Petroleum and Energy set as a condition that the two companies (DEA Norge and E.ON E&P Norge) merged. As a result of this, the current oil price situation and a shift in strategic direction the merged organization will be smaller than the two companies combined.”
In Norway, DEA currently has interests in 69 licenses and a daily production of more than 70,000 barrels of oil equivalent (2015). Furthermore, DEA operates the Zidane discovery, where a PDO is planned to be submitted this year.
The article has been updated to include a statement by DEA Norge spokesperson.
Offshore Energy Today Staff