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Oil Search – Commences Operating Cost Reductions

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Not everyone is safe under these unprecedented circumstances and that includes businesses too.  Oil giant, Oil Search, in a media release in a media release announced that it had taken various measures to cut costs in order to maintain operations.

 

The release stated that it was “continuing to take decisive steps and make hard decisions to ensure the sustainability of its business in response to the unprecedented challenges facing the global energy industry”.

 

Some of the measures as announced in that media release included:

 

  • Suspending all upcoming discretionary activities, except those required to maintain the safe and reliable production of oil and gas from its facilities in PNG. These actions will both preserve capital and minimise exposure of COVID-19 on its staff.
  • Due to reduction in work programs and the uncertain oil price outlook, reducing Company’s headcount in Sydney and Anchorage by approximately 100 staff.
  • undertaking a systematic review to identify and implement further measures to optimise corporate and operating expenditure, focused on driving long-termbreak-even costs as low as possible
  • Board and executives taking 20% pay cuts for next six months

 

Oil Search Managing Director Dr Keiran Wulff commenting on the current decisions taken said:

 

This has been a very difficult decision to make, particularly given current global circumstances. We have treated our team members with respect and will continue to offer them support through the hard times ahead

 

He added:

 

Oil Search greatly values the dedication shown by all team members across the organisat ion during these very challenging times

 

It is uncertain as to how long the current situation will last but Dr Wulff said that the decisive actions taken by the company will ensure that it is “in the best position possible to ride out the current global economic challenges, continue production safely and reliably, and be in a strong position to deliver our growth projects when economic conditions turn around”.

 

Click here for the original Press Release.

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