Oil giants cut costs in Trinidad as fuel prices continue to drop

oil

Two of Trinidad and Tobago’s largest energy producers—BP Trinidad and Tobago (bpTT) and BHP Billiton—say they are cutting costs, with at least one of them confirming job cuts.

In separate statements issued this week, BP Trinidad and Tobago (bpTT) and BHP Billiton said they were reviewing costs. After hovering around US$30 per barrel and then dipping under the mark – hitting a four-year low – oil prices have risen slightly to US$31.03 per barrel.

BPTT said in line with the bp Group’s focus on improving efficiency and reducing costs, it planned to “seek further cost efficiencies in our business in 2016”. “This plan will include a review of third-party costs, activity prioritization, process simplification and organizational structure. As plans are still being reviewed, the specific numbers have not yet been finalized. Throughout this exercise our first priority will remain the safety of our people and our operations,” it said.

BHP was more outright about having to send home workers. It said the petroleum industry is facing extremely challenging market conditions, even by historical standards, and the company was therefore examining its current and future business needs to optimize both staffing and costs and make appropriate adjustments in its global Petroleum business.

“We remain committed to our ongoing operations while maintaining a platform for future growth opportunities. We will achieve this goal through our productivity program which is already yielding significant savings, and organizational adjustments to meet the needs of our business. As a result, we will have a smaller, more focused organization and this has resulted in some employee reductions,” it said.

BHP added that as a result of the reorganization, some positions within the Trinidad and Tobago operation will be impacted.

For original article, see http://www.caribbean360.com/business/oil-giants-cut-costs-in-trinidad-as-fuel-prices-continue-to-drop

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