WINDSOR, UK – A company spokesperson has confirmed to Offshore that Centrica E&P Norway, the oil and gas division of energy and utilities company Centrica, will see a reduction in permanent and contract employees within the coming weeks.
“Due to the market situation, [Centrica E&P Norway] has undergone restructuring in recent months. The goal is to build an organization that delivers excellent results even when oil and gas prices are low. One outcome of the process is a smaller organization.
This means a reduction in the numbers of both contractors and permanent employees. Exactly how many is not clear yet, but it could concern up to 20 permanent employees in Norway. This is of course a difficult situation for all concerned, but unfortunately a necessary measure. The new organization should be in place within the next month,” the spokesperson said.
The representative was unable to share further details, including the timeline, of the recent restructuring.
“Centrica has over the past 10 years in Norway delivered strong results. It is now important that we put in place a leaner organization that can continue to deliver value, also when commodity prices are low. Norway continues to be a focus area for Centrica’s E&P activity,” the spokesperson continued.
The company says that its E&P businesses in Norway and the UK continental shelf produces around 75,000 boe/d and 66,000 boe/d, respectively. Last year, it said that it planned to scale back its global E&P activities.
Centrica’s assets are based around five hubs: two producing hubs in the North Sea and three exploration hubs in the North Sea and Norwegian Sea. The company participates in eight producing fields: Vale, where it holds the operatorship, Statfjord, Statfjord Nord, Statfjord Øst, Sygna, Heimdal, Kvitebjørn, and Valemon.
The company said its E&P business currently produces between 75-80 MMboe of gas and liquids annually, with assets on and offshore in the UK, the Netherlands, Norway, western Canada, and Trinidad and Tobago. It is now targeting production rates nearly half that, aiming for between 40-50 MMboe annually, focusing on the North Sea and East Irish Sea.
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