Maersk to cut exploration, staffing levels

Offshore staff

COPENHAGEN, DenmarkMaersk Oil intends to cut 40 positions from its divisions in Copenhagen, Aberdeen and Stavanger, citing continued pressures arising from lower oil prices.

Although the company has reduced the breakeven price of its portfolio from $45-55 to $40-45/bbl, it continues to seek ways of limiting exposure to investments with high breakeven costs.

In the short term, Maersk says it will focus on business development through targeted mergers and acquisitions.

During 1Q, the company reported exploration costs of $57 million, down from $162 million for 2015.

While exploration will provide long-term growth into the 2020’s and beyond, the current business environment means that Maersk will limit its exploration activity in the near term.

05/09/2016

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