Oil Search has slashed its staff count by 34 percent since March, the business revealed on Wednesday.
The Papua New Guinean (PNG) company’s full-time employees, which include employees and long-term contractors, have been reduced from 1,649 people, as of March 14, to 1,222 currently, with a further 127 people due to transition out by the end of the year.
Reductions have been made across all locations, according to the company, which outlined that a range of support programs have been established for departing employees. The programs, which are designed to help workers reskill and transition towards new opportunities, include the provision of funding assistance for retraining, an alumni program to rehire should suitable positions become available and the provision of financial support and assistance through outplacement services.
Oil Search revealed that other cost reduction and continuous improvement initiatives were also being coordinated. These include third-party spend reduction programs, an efficiency enhancement program and the application of technology and data gathering to drive costs lower.
“The painful decisions we have taken to optimize our organizational structure, enhance efficiencies and reduce operating costs have not been made lightly,” Keiran Wulff, Oil Search’s managing director, said in a company statement.
“They are the result of extensive studies aimed at ensuring we have an organizational structure that not only makes us more resilient to oil and gas price fluctuations but also embeds a culture of continuous improvement, operational excellence and strict fiscal discipline,” he added.
“We are committed to treating our people with care and respect, providing generous termination payments and are implementing a strong post-employment support structure for those who are leaving Oil Search to help them reskill and transition towards new opportunities,” Wulff continued.
Oil Search operates all of PNG’s producing oil fields and holds a 29 percent interest in the ExxonMobil operated PNG LNG project, the company’s website shows. Oil Search, which was established in 1929, is based in Port Moresby, PNG.
To contact the author, email andreas.exarheas@rigzone.com
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