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Ophir to cut 15 percent jobs amid oil price glut
July 12, 2017 / 7:41 AM / 4 months ago

Ophir to cut 15 percent jobs amid oil price glut

(Reuters) - Ophir Energy Plc (OPHR.L) will cut about 15 percent of its global workforce, the UK oil and gas explorer said on Wednesday, as low oil prices force producers to trim costs.

Shares in Ophir rose as much as 7.4 percent in early trading on the London Stock Exchange, pulling away from an 8-month low touched in the previous session.

The stock was trading up about 3.5 percent at 73 pence at 0730 GMT (8.30 a.m. BST).

The company said the job cuts were focused on corporate roles in London and expatriate positions, to save an estimated $10 million to $12 million a year.

Oil prices have fallen to about $45 a barrel from more than $100 before the price crash in 2014.

Ophir also lowered its full-year production forecast, saying its Kerendan gas field in Indonesia ramped up at a slower-than-expected pace.

Ophir cut full-year production forecast to 12,000 barrels of oil equivalent per day (boepd), and said production in the first half ended June 30 averaged at 11,300 boepd. This was 1,200 boepd below target as production at two of its gas fields was lower than expected, the company said.

Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Amrutha Gayathri

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