Statoil to cut more than 1,000 jobs

Company's output down 9 percent year-on-year.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |   July 25, 2014 at 10:00 AM

STAVANGER, Norway, July 25 (UPI) -- Norwegian energy company Statoil, one of the largest in the world, said Friday it was cutting as many as 1,400 positions in an effort to trim costs.

"We continue progressing our program to reduce cost and improve capital efficiency," Statoil President and Chief Executive Officer Helge Lund said in a statement. "In the quarter, we have announced a potential to reduce between 1,100 and 1,400 positions."

A reduction of around 1,000 has already been implemented.

The company said net operating income for second quarter 2014 was down nearly 7 percent to $5.1 billion year-on-year.

In terms of production, Statoil said it put out about 1.8 billion barrels of oil equivalent during the second quarter, a 9 percent decrease from the same time last year.

"Our quarterly earnings were impacted by divestments, seasonal effects and lower gas prices," Lund said.

The company recorded a gain of $580 million in the second quarter sale of interest in the giant Shah Deniz natural gas project off the coast of Azerbaijan. That project is expected to help Europe break the Russian grip on the regional energy sector.

Norway is the second-largest supplier of natural gas to Europe after Russia. Nearly three-quarters of the oil it produces is exported to European countries.

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