Statoil Confirms Norwegian Based Job Losses

Published at 04:25PM - 13/10/14

Energy giant Statoil has confirmed that it will be cutting another 500 jobs in its Norwegian development and production unit. A spokesperson for the company confirmed industry rumours about the job losses, saying that the lay-offs would begin shortly and continue in a phased process until last 2016.

A third of the redundancies will be made in the offshore business and two-thirds in onshore positions. The Executive VP for DPNorway, Arne Sigve Nylund, said that the international gas and oil industry was facing significant challenges on efficiency and cost fronts. He added that the company was seeking to implement a significant corporate improvement programme with the aim of boosting productivity and securing the long-term and profitable operations of their business on Norway’s continental shelf.

The new level of staffing would ensure that the operations remain efficient, expertly resourced and, above all, safe for all the forthcoming tasks within Statoil’s operational delivery plan. The correct level of staffing was determined as part of Statoil’s annual review into manpower and organisational competence. Only last year, the company was employing over 23,000 staff.

Earlier in the year, Statoil slashed its output targets and capital spending plan, pleasing investors with promises of higher returns after a prolonged period of post-dividend negative cash flows.

The Norwegian operator’s profits dropped by 12pc this summer, after asset sales and maintenance work affected its production output.

Last updated on 12:27PM - 24/10/14