Published: February 5, 2016 |

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UK oil major BP has announced plans to cut 3,000 more jobs as a result of reduced earnings in 2015 due to slump in oil price.

The firm said that the profits have been dropped by 51 percent to $5.9bn (£4.1bn), compared with $12.1bn reported in 2014, representing its biggest loss for more than two decades.

The latest job cuts plan by 2017 is expected to affect staff and contractors in its downstream segment. The plan is in addition to the firm’s recently announced decision to axe 4,000 jobs globally in exploration and drilling business this year in order to reduce costs.

BP Group CEO Bob Dudley said: “We are continuing to move rapidly to adapt and re-balance BP for the changing environment.

“We’re making good progress in managing and lowering our costs and capital spending, while maintaining safe and reliable operations and continuing disciplined investment into the future of our portfolio.”

BP said it will maintain annual organic capital expenditure between $17 and $19 billion in 2016 and 2017.

BP chief financial officer Brian Gilvary said: “We will keep the capital frame under review as we move through 2016 and beyond.

“Should current conditions persist for longer than anticipated, we expect that all the actions we are taking will capture more deflation and so drive the point at which we balance our organic sources and uses of cash lower than the $60 per barrel that we indicated at last quarter’s results.”

BP, however, would continue to invest about $4bn in North Sea operations in 2016, BBC News reported earlier.

Source: (February 3, 2016) Energy Business Review

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