US supermajor Chevron will cut some 800 jobs in Thailand to keep in line with its plan to cut 4000 from the company this year, and its cost reduction efforts of US$500 million due to the downturn, according to news reports.
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Image from Chevron. |
According to local Thai media at the Bangkok Post, the layoffs will take effect on 1 August.
In Thailand, Chevron employs approximately 2000 staff and 1700 contractors. It is the top natural gas and crude oil producer in the country, supplying about 40% of Thailand’s natural gas demand.
Gas produced from Chevron fields are sold to Thai national oil company PTT Public, which is transported via PTT's subsea pipelines to the plants in Rayong and Nakhon Si Thammarat.
According to Chevron’s 2015 annual report, in the Gulf of Thailand, it has operated and non-operated working interests in multiple offshore blocks. While operated interest in the Pattani basin ranges from 35-80%, the firm’s non-operated interest in the Malay basin is 16%.
In 2015, Chevron drilled three exploration and three delineation wells in the operated areas of the Pattani basin, and all wells were successful. Net average daily production in 2015 was 66,000 bbl of crude oil and condensate and 1 Bcf of natural gas.
The company is continuing to assess alternatives for the optimum development of the Ubon field as well. Chevron reported a loss of $725 million in Q1 2016, compared with earnings of $2.6 billion in Q1 2015.
In April, Chevron cut 655 upstream jobs from its Houston workforce. Chevron’s workforce reductions between year-end 2014 and year-end 2015 were at 3200.
In March, the US supermajor said it was set to cut its budget by some 36% by next year, with plans to spend $17-$22 billion in 2017 and 2018, representing a 36% drop from 2016’s planned $26.6 billion.
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