Trinity, an independent E&P company focused on Trinidad and Tobago, in light of the company’s current funding position and the low oil price environment, has identified a number of cost-reduction measures that include management changes and a redundancy program across functions. As part of this process, Craig McCallum, COO, is to leave the business, effective March 31, 2016.
These measures, in conjunction with other cost reductions achieved to date, are expected to reduce general and administrative (G&A) costs on a run rate basis by more than US$1.6 million per annum. This is expected to save more than US$0.3 million in the current financial year, although this will be offset by directly related cash costs of approximately US$0.2 million. G&A costs have already been reduced to US$5.7 million for the irwt half of 2015 vs. US$10.4 million for the first half of 2014.
Trinity has also reduced field operating costs, including working closely with partners, suppliers, and other operators to achieve logistical synergies. The company expects to continue with these efforts, bringing operating expenditure to levels lower than those of 2014. Trinity remains on target to reduce operating costs to US$26 million for the full financial year 2015 (vs. US$33 million for 2014).