Tullow Oil Kenya has announced plans to cut its workforce in what it said was an effort to lower its wage bill to a more sustainable level
In a statement, the firm said changes in Nairobi and the London offices follow the recent extension of its license in Kenya.
In February, the firm indicated that it would be cutting jobs across all levels of the organisation, affecting contract, expatriate, permanent and fixed-term employees.
”These changes will allow Tullow to work effectively with its Joint Venture Partners on its previously announced comprehensive review of the Project Oil Kenya development concept to ensure that it will be robust at low oil prices,’’ the statement read in part.
It added that the team will be reduced over the coming months as the work programme required to deliver the comprehensive review is compiled.
”Because there will be very limited activity in the field and the Group will be sharing resources with its Joint Venture Partners, the team will be considerably smaller although the final headcount is yet to be confirmed,’’ Tullow said.
The British oil firm has also made changes to its management in the country, with MD Martin Mbogo who has served the company for 10 years set to exit position end of the year replaced immediately by current Asset director Madhan Srinivasan.
Martin will stay with the firm until the end of the year to hand over his responsibilities to his successor who has over 27 years of oil and gas experience and has worked on Project Oil Kenya for the past six years.
Tullow Oil Plc chief executive Rahul Dhir thanked for his contributions and achievements for Tullow and the Kenyan Oil & Gas sector in a challenging environment.
His passionate advocacy of Local Content and the localisation of staff and contractors has set an example of what can be achieved by companies that take their obligations to host nations and communities seriously,’’ Dhir said.