Oil and gas super major ExxonMobil is set to cut 1,600 jobs in Europe. Said This week.
“The proposed changes are subject to local information and consulting processes applicable in each country, and are the result of insights gained over the past several years into restructuring and work process changes to improve performance and reduce costs,” Exxon said in a statement. “The impact of COVID-19 on demand for ExxonMobil products has increased the urgency of current performance tasks.”
The fall in oil prices caused by the corona virus epidemic has hit America’s most valuable energy company and the world’s most valuable company hard. The company plunged into losses in the first quarter of this year and then recorded another loss in the second quarter. It now expects to post a negative net result in the third quarter as well. It weighs both its share price and investor sentiment, which motivates the company to move quickly with cost reductions.
As part of these efforts, Super Major is drastically reducing its presence in Europe’s oil and gas sector. After leaving Norway, Exxon has put North Sea assets up for sale, valued at up to $ 2 billion last year, but for now, oil prices may be cheaper due to the slump and epidemic. The company sold its Norwegian operations last year to local War Energy for $ 4.5 billion.
Exxon will sell shares in 15 sectors, which will contribute 37,000 ppm to the company’s gross domestic product this year. Two research modules and Exxon shares in the pipeline networks in the region are also on the table. So far, about half a dozen companies have expressed interest in the assets.
Written by Irina Slav for Oilprice.com
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