Without a business partner for its faltering energy marketing and trading unit, Tulsa-based Williams Cos. may be forced to cut more jobs, according to Bill Hobbs, CEO of energy trading for the company. He told the Tulsa World in an interview this week that the cuts would impact jobs on the trading floor. Williams cut about 16% of its 800-member trading workforce last month in London and the United States, affecting about 130 employees (see Daily GPI, June 24).

Hobbs said Williams has had discussions with “several companies interested in forming a joint venture,” and he said, “for us to grow, we need a partner. We need someone who’s going to come in and share the expense, add some liquidity and hopefully bring some assets with them.”

On Wednesday, reports surfaced that Williams may be selling its 45% interest in former subsidiary Williams Communications Group, which is bankrupt, to also improve its liquidity (see Daily GPI, July 18).

Hobbs did not identify any of the potential partners, but said there was “a lot of interest…there’s interest from major energy players. There’s interest from financial institutions. There’s interest from private equity firms.” Although the company might also consider selling the trading unit outright, Hobbs said that was unlikely.

Without a partner, Hobbs indicated the company would still keep its energy trading unit, but said it would be much smaller. “What you’ll see is a scaled-down version of the energy marketing and trading group that you see out here today,” he told the World. Like its peers, Williams has seen a sharp decline in its energy trading business, but Hobbs predicted that the demand for the services would return. “The ones that survive are going to have plenty of opportunities,” he said.

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