Tullow Oil is expected to cut jobs by the end of the first quarter in an effort to cut costs following the dramatic fall in the price of crude oil.
UK newspaper The Telegraph reported on Tuesday that the company, which owns assets in the North Sea but is increasingly focused on Africa, is currently conducting a review of staffing levels and details of cuts could be presented to the market as early as its next earnings statement due next month.
The Telegraph reports a source saying that there will “unquestionably” be a smaller Tullow at the end of the streamlining process.
The Irish-based exploration company is due to issue a trading statement and operational update on Thursday, and the market is expecting to get a steer on Tullow’s capital spending review as well possible write-downs for the year
Shares in the company have fallen by more than 50 per cent over the last year on both the London and Irish markets, and the stock closed at €5 in Dublin yesterday.
Oil prices have plummeted by 50 per cent since July to below $48 per barrel. Yesterday Goldman Sachs asserted that oil will need to fall to below $40 for six months to slow US producers.
