TUSKAR Resources has announced the reorganisation of its management and operating structure, involving the closure of its Irish office and the appointment of a new managing director.
The reorganisation aims to reduce the company's day-to-day running costs and is expected to lead to savings of around £400,000 (€508,260) annually, which will be funnelled into development of its Obe oil field in OML 110, offshore Nigeria.
The company's operations will be moved to Houston, Texas, where three executives of Allied Energy, Tuskar's major shareholder, will take over management from June 30th, 1999. Mr Gene Manson will replace Mr John Lander as managing director, while new finance and technical managers are also being appointed.
Tuskar's chairman, Mr Howard Wolf, said the board had been encouraged by a rise in oil prices and the peaceful transition to a democratically elected government in Nigeria, which will facilitate the development of the Obe oil field. But "prior to any anticipated cash flow from Obe, the ongoing running costs of the company as it is currently structured would put a potentially intolerable burden on Tuskar. "The board has therefore taken a decision to reduce the corporate overhead by approximately twothirds of the current level to ensure the company remains a going concern. The transfer of day-today operations to the US will facilitate the co-ordination of the Obe development with Allied, whose staff have been acting as technical advisers to Tuskar under the management agreement."
Camac Allied Group took a 65 per cent share in Tuskar in October 1996, in a deal under which Tuskar took a 40 per cent interest in the Obe oilfield off the Nigerian coast. Tuskar posted a loss of £1.58 million in 1998 up from £634,000 in the previous year.
Allied reiterated its continued financial support for the company in its new situation, undertaking to provide the necessary funding to satisfy any shortfalls in Tuskar's operating cost requirements until January 1st, 2000 and not to make a demand under its loan agreement before the same date.
The move will lead to the loss of three permanent posts, including that of the managing director. The registered office of Tuskar will remain in Dublin.
