BP Amoco Sets Reorganization, Job Cuts

Continuing to work through the monstrous merger completed a month ago, BP Amoco centralized its power last week by choosing the Westlake complex in Houston as its exploration and production headquarters, then revealing a 1,400 person job cut at the complex. Company officials said the jobs were lost due to duplication and commodity price reasons. Overall, BP Amoco plans to lay off 1,600 workers in Texas by the end of the first quarter.

"We knew the merger would mean job losses due to eliminating duplication, but this has been exacerbated by the external climate. We will now be doing everything we can to help those who are leaving to transition to a new future," said Scott Urban, a BP Amoco spokesman.

Urban said the company would start notifying people immediately. Depending on their status, employees can take early retirement or receive a severance package with up to 71.5 weeks of salary.

The company's Clear Lake engineering and construction office will close, sending 380 of the 500 workers to other locations, while the others will be let go. Most of BP Amoco's other Texas operations will remain, for the most part, untouched.

Operations now residing in New Orleans, Tulsa, and Denver will be relocated and directed from Houston. The headquarters will oversee eight upstream business units. Seven units will oversee exploration and production in eight states and the Gulf of Mexico; the other will manage the company's global power generation business.

"When the reorganization is complete. we believe we will have a very competitive operation in Texas and the Houston Gulf Coast. The region will remain one of BP Amoco's biggest population centers in the world, and BP Amoco will remain one of the largest oil and gas producers in the state," Urban said.

A BP Amoco spokesperson said other units of the new company will also be making decisions regarding employment by the end of the first quarter.

John Norris

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