Petrofac is slashing planned spending and cutting staff levels by 20% as it looks to deal with the impact of oil price falls as stated by the oil major.

 

The oilfield services company, which has bases at Aberdeen and Montrose, said measures would reduce its overhead and project support costs by at least £82m in 2020 and by up to £164m million in 2021.

 

Petrofac is cutting salaries and allowances for the board, senior management and most of its employees by between 10-15%. It also said it is reducing personnel by around 20% and furloughing staff in anticipation of a reduction in activity levels.

 

Ayman Asfari, Petrofac’s group chief executive, commented “At this unprecedented time, our top priority remains the health and well-being of our people, clients and suppliers, and ensuring that we take decisive action to protect the long-term health of our business. I would like to thank all of our people for their outstanding response to the crisis, allowing Petrofac to continue to operate effectively and provide invaluable support to our clients during this challenging time.

 

We have a resilient business model, strong competitive position and a differentiated in-country value proposition that is highly valued by our clients. Nevertheless, we are taking swift, decisive action in response to the COVID-19 pandemic and lower oil prices to reduce costs, retain our competitiveness and preserve the strength of our balance sheet. These best position us to protect our business, stakeholders and the communities we serve.”