CALGARY, Alberta, March 18 (UPI) -- In response to a slowdown in the industry, Canadian energy company Nexen, a Chinese subsidiary, announced plans to eliminate more than 300 employees.
The Canadian subsidiary of China National Offshore Oil Corp. said it will cut roughly 340 employees from its North American operations. Its British division also started consultations aimed at shedding 60 employees from the payroll there.
Nexen Chief Executive Officer Fang Zhi said the downturn in the oil and natural gas sector affecting all members of the industry meant it was time to streamline operations to ensure long-term viability.
"While regrettable, these organizational changes are necessary to align the company with our reduced capital spending program," he said in a statement Tuesday.
Canadian Prime Minister Stephen Harper approved the CNOOC-Nexen deal in late 2012, countering concerns about aggressive acquisitions in the country's oil industry by Chinese state-controlled oil companies.
The Nexen deal was among China's largest overseas acquisitions. Since 2009, the country's state-run oil and gas companies have purchased assets in the Middle East, North America, Latin America, Africa and Asia.
Nexen's CEO said the company's long-term outlook in 2015 was the same as it was when CNOOC made the acquisition more than two years ago. "Our long-term perspective continues to be fundamental to how we make decisions for our organization," he said. "As one of the world's largest oil and gas producers, CNOOC Ltd. is focused on driving long-term stability for the company."
A January report from the IMF found lower crude oil prices would be a drag on investment activity in Canada, with the energy sector bearing the brunt of market trends.
