Oil Search (ASX:OSH) has recently completed a review of its organisation and cost structure and is set to further reduce its work force.
Full time employees which include employees and long-term contractors, have been reduced from 1,649 people as of 14 March 2020 to 1,222 currently, with a further 137 people transitioning out by year end.
The natural gas supplier says production costs will be around $US10.50 a barrel of oil equivalent in 2020 compared to prior guidance of between $US11 and $US12.
The cost cuts are to insure the company not only has the capabilities to withstand a prolonged period of subdued oil prices, but is also optimally positioned to operate its production assets safely and cost efficiently and progress growth opportunities in Papua NewGuinea (PNG) and Alaska.
Shares in Oil Search (ASX:OSH) are trading 8.2 per cent higher at $1.39.