Low oil prices prompted Texaco to cut about 1,000 out of 8,000upstream employee and contractor jobs worldwide as part of areorganization designed to increase emphasis on long-termproduction and reserve growth and streamline costs and improvecompetitiveness. Cost savings are projected to be $200 million peryear, and the reorganization is expected to be completed by the endof the first quarter of next year.
A similar but unrelated move at Texaco Natural Gas will affectabout 100 employees. Texaco said it is reviewing its North Americangas business and expects to cut about 100 jobs. The natural gascuts will be made mainly at offices in Houston and Tulsa, as wellas various locations in Louisiana. Employees are being notifiedthis week. They will be offered severance, a spokeswoman said.
Referring to the worldwide layoffs, Senior Vice President JohnJ. O’Connor said, “Changes in the industry have fundamentallyaltered the competitive landscape and Texaco must respond in orderto improve its position. “By refocusing our capital and resources,the company is positioned to improve efficiencies in currentoperations and achieve our ambitious growth plans through a strongemphasis on strategic exploration activities, acquisitions anddiscovered reserve opportunities.” The restructuring is designed tosharply focus Texaco’s upstream activities on three key activities:finding and acquiring resources, commercial development, andproduction optimization.
Besides O’Connor, other Texaco vice presidents will lead the neworganization, with each having worldwide responsibilities. ClaireS. Farley, president exploration and new ventures, most recentlyserved as president Texaco North America Production. In her newposition, Farley will be responsible for finding and securingresources through worldwide exploration, new ventures andacquisitions. Bruce S. Appelbaum will continue to oversee Texaco’sworldwide exploration activities. Robert A. Solberg, presidentcommercial development, most recently served as presidentinternational production with responsibility for producingactivities in Asia, the Pacific Rim, West Africa and Latin America.In his new position, Solberg will be responsible for the assessmentof commercial viability and swift development of new assets.
Joe Fisher, Houston
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