Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Oil company ConocoPhillips is reducing its staff in Norway by 140 employees and ending its contracts with an additional 270 hired consultants. In addition, there will be a reduction in the amounts of foreign workers from other parts of the company posted in Norway. The staff reductions affect both administrative and technical positions, mainly at the company's Norwegian headquarters in Tananger. The downsizing is planned to be accomplished without direct dismissals, through the use of voluntary severance packages and early retirement, as well as non-renewal of contracts.
The restructuring is tied to a an ongoing process to reduce costs in the company, which has been ongoing for more than a year while ConocoPhillips has been finishing a multi-year upgrade process at the Ekofisk oil field. The newest and last platform here was formally opened March 23rd 2015. The company planned to cut costs with 10 percent by 2015 and 20-30 percent by 2020-2030. ConocoPhillips was in cooperation with Total, Statoil and Eni preparing to invest heavily in developing the Tommeliten Alpha oil field. However, these plans were cancelled in March 2015, in response to the reduced oil price. ConocoPhillips has not announced any additional restructuring in response to this development.
ConocoPhillips is one of several oil companies downsizing in response to the reduced oil price and rate of investment in the North Sea. The unemployment rate in the Rogaland region is now 3 percent. The regional unemployment rate is thus around the national average, after nine years of lower rates. About 10.000 jobs have been cut in the petroleum sector over the past year. Statistics Norway has estimated that as much as 30.000 jobs directly related to petroleum investment activity may be cut before 2018.
Eurofound (2014), ConocoPhillips Norge, Internal restructuring in Norway, factsheet number 79192, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/79192.