UPDATE - Voluntary Redundancy Plans Signal of Tough Times

Norway-headquartered Statoil is offering voluntary redundancy packages to its entire workforce in a clear signal of readjustment to exceptional times, with oil prices recently nearing 11-year lows.

"As part of ongoing rightsizing efforts in the company, permanent employees in Statoil ASA will now be allowed to apply for severance packages" Statoil press office wrote Natural Gas Europe.

Earlier this year, the Stavanger-based company said it wanted to have 17-19% fewer employees by end-2016 compared to 2013, but did not previously explain how. 

"In June we announced that an estimated staff reduction of 1100-1500 man-years had been identified, and the offer to apply for severance packages is part of this work. The staff reduction will be implemented during 2016" Statoil explained.

Reuters wrote on Tuesday that US gas futures fell around 3% to a 14-year low. Moody’s cut its 2016 Brent oil price outlook by $10 to $43. 

STATOIL TRIES TO STRENGTHEN COMPETITIVENESS

Also on Tuesday, the Norwegian company awarded maintenance and modification agreements worth NOK 24 billion (€2.5 billion) for the company’s installations on the Norwegian continental shelf (NCS) and for the onshore plants at Sture, Kollsnes, Kårstø and Melkøya.

“These awards will strengthen the NCS competitiveness and stimulate long-term activity and value creation,” senior vice president for operations technology of Development and Production Norway (DPN) Kjetil Hove commented in a statement.