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StatoilHydro announces cost cuts for 2009

StatoilHydro announces cost cuts for 2009

State-controlled Norwegian oil company StatoilHydro ASA announced plans Wednesday to cut its 2009 costs by 1.5 billion kroner ($215 million) to adjust to weaker market conditions amid the world economic downturn and lower crude prices.
The Stavanger-based company and key player on Norway's offshore oil fields said in a stock market announcement that the cuts will mainly be made in staff functions, business development, information technology and administration.
"The oil price has fallen substantially recently and the world is experiencing an economic downturn," StatoilHydro chief executive Helge Lund said. "At the same time, costs are at record-high levels. Our response is to make stricter priorities, cut costs, optimize plans and hold over projects which are not time critical."
Crude prices have slipped from a peak of $147 per barrel in July to under $40.
"We are prepared for strong fluctuations in the oil price at a relatively low level in the short and medium term," said Lund.
StatoilHydro said it plans eight new projects this year, largely profitable with an oil price over $35 per barrel. Five are off the Norwegian coast, with the others located in Angola, Tahiti and the U.S. Gulf of Mexico.
The company said it met its 2008 production target of 1.9 million barrels per day worldwide, and expects to average 1.95 million barrels this year and grow to 2.2 million barrels in 2012.
The group projected capital expenditures of 13.5 billion kroner ($1.9 billion) for 2009, down from an estimated 16 billion kroner, including acquisitions, for 2008.
StatoilHydro employs nearly 30,000 people in 40 countries.
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On the Net:
http://www.statoilhydro.com


Updated : 2021-08-03 16:36 GMT+08:00