Chevron Nigeria plans to cut 25% of staff after oil price drop

The Nigerian unit of oil major Chevron CVX.N plans to cut its local workforce by 25% to reduce costs, it said on Saturday, due to weak demand for oil in the wake of the coronavirus pandemic.

The company, which operates a joint venture with Nigeria’s state-owned NNPC, said it needed to make the adjustments to remain competitive in light of the prevailing business climate. It did not say how many jobs would be affected but said the cuts would affect workers across its operations.

It added in a statement there were no plans to move jobs abroad and it was engaging with its workforce on the plan. Employees will retain their jobs until the reorganisation is completed.

Prices of oil, Nigeria’s main export, fell sharply early this year and in April global benchmark Brent LCOc1 hit a 21-year low below $16 as the coronavirus outbreak hit demand, though oil markets have recovered since then.

The International Energy Agency (IEA) trimmed its 2020 oil demand forecast in September, citing caution about the pace of economic recovery from the pandemic.

By Tife Owolabi and Chijioke Ohuocha;

Gh Extractives

Ghextractives.com is an independent multimedia portal that seeks to provide credible information and news content to readers especially players in the extractive sector in Ghana, Africa and beyond. It also provides a unique platform for players in the energy sector to market their products and reach a wider audience

View All Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.