Shell Malaysia announced it will lay off 1300 out of 6500 positions in its upstream division over the next two years.
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Gumusut-Kakap. Image from Shell. |
It is part of the company’s transformation program that the company says focuses on improving efficiency, and removing complexity to become a more agile and competitive company.
“Shell Malaysia is preparing itself to be more competitive in a low oil price environment. Continuing business as usual is not sustainable. We are taking difficult, but necessary action,” said Iain Lo, Shell Malaysia chairman. “This is certainly a very difficult decision to make. We have made adjustments in our upstream portfolio and we will drive greater efficiency in our operations. Regretfully, these have resulted in an unavoidable impact on staff.”
The company’s Gumusut-Kakap platform is its first deepwater floating production system in Malaysia. Construction of a tension leg platform for its second deepwater venture is also underway for the Malikai oil field, 100km offshore Sabah. The company has invested an average of US$100 million per year over the last six years, and has made 11 discoveries, as an operator and partner, in the past 24 months.
“We are proud of our contributions to the oil and gas industry in Malaysia. We look forward to continue a long and fruitful partnership with PETRONAS. We also believe that we have much to contribute to the nation, especially to Sabah and Sarawak, when it comes to the development of the country’s resources. I want to be unequivocal in saying that Shell remains confident of its future in Malaysia,” said Lo.
Shell’s long history in Malaysia will mark 125 years in 2016. It is one of the very few countries in the Shell group where all the major lines of Shell’s business, from the upstream to the downstream as well as business services, are present.
“We are strengthening our organization by prioritizing productivity and efficiency, without compromising on safety and reliability. We will emerge from this process as a more nimble, resilient and competitive player in the Malaysian oil and gas industry,” said Lo.
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