Chevron plans to cut 800 jobs this year from its Thailand business, as it continues to cut back on costs amidst the continued slump in oil prices.
The US oil firm, which plans to cut a total of US$500 million (£441 million) in costs, is already cutting costs worldwide, but this has not been enough to prevent the biggest quarterly loss in 15 years.
“The cuts will help the company to continue operations in Thailand”, Chevron Thailand Exploration and Production President Pairoj Kaweeyanun said.
Chevron To Cut Workforce Further
The executive explained that Chevron Thailand’s output should not be impacted by the cuts, which will take effect on August 1.
The company is Thailand’s largest oil and gas producer, supplying about half of the country’s demand for natural gas. Thailand relies on gas to fuel around 60% of its power generation capacity.
This is the second time this year that Chevron announces layoffs in Thailand; the company had already announced 100 job cuts earlier in 2016, the President explained. Currently, the firm employs a total of 2,200 people and 1,700 contractors.
Kaweeyanun explained that the firm “aimed to make savings of US$500 million in Thailand this year”.
Chevron Still Hopes To Expand
The company operates several oil and gas licence blocks in the Gulf of Thailand and is discussing the extension of concessions for some of them beyond the expiry dates of 2022-2023.
So far, Chevron has already submitted proposals to the energy ministry on these concessions and is hoping for a government decision in the beginning of next year to ensure it can make the necessary investment to maintain production, the executive explained further.
The company is also the majority shareholders in Star Petroleum Refining, which has raised US$365 million (£321.9 million) which operates a 165,000 bpd refinery in the eastern province of Rayong.