Conoco to cut costs and reduce spending
30-12-98 Conoco said it will cut costs and reduce capital spending.
Conoco said it would slice about $ 500 mm from 1998 spending, bringing the 1999 total to $ 1.8 bn, with $ 1.3 bn to be spent on exploration and production projects.
"Conoco will further reduce costs by combining some functions in the United States and by more broadly sharing services and more effectively deploying our employees," President and Chief Executive Archie Dunham said.
Conoco said it would cut about 975 jobs from its world-wide exploration and production business, which would bear the brunt of the realignment, and save about $ 60 mm annually from the reorganisation.
The company has 16,000 regular employees and more than 27,000 contractors in its operations spanning 40 countries.
In 1997 the company produced an average of 654,000 bpd, and in 1998 completed major projects such as the 100,000 bpd Melaka refinery in Malaysia. It also developed a natural gas field in the North Sea, a joint-venture oil field in Venezuelaand natural gas assets in South Texas.
At current oil price levels, Conoco said, the planned capital budget would lead to 6 % production growth over 1998.
