Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

Shell to cut 5 to 10 percent of jobs at oil sands project

Published 09/01/2015, 21:25
© Reuters. A logo for Shell is seen on a garage forecourt in central London
SHEL
-
CNQ
-
COS
-
IMO
-
SU
-

By Nia Williams

CALGARY, Alberta (Reuters) - Royal Dutch Shell Plc (L:RDSa) will cut between 5 and 10 percent of the just over 3,000 jobs at its Albian Sands mining project in northern Alberta, a company spokesman said on Friday, although he refrained from connecting the move to plunging oil prices.

Spokesman Cameron Yost said the actual number of job reductions at the Canadian operation had not yet been finalised, adding it would be "well below" 10 percent.

The cuts were announced to Shell employees on Thursday.

Yost said those affected will be considered for other positions within Shell's operations.

"It's not layoffs in the traditional sense of the word," Yost said. "It's adjustments to the organizational structure."

Albian Sands is the mining portion of Shell's Athabasca Oil Sands project near Fort McMurray, Alberta, which also includes the 255,000 barrel-per day Scotford upgrader.

Last February, Shell halted work on its proposed 200,000 bpd Pierre River oil sands mine in Alberta, saying it was re-evaluating the timing of various asset developments.

Asked whether the reductions were related to the halving of global oil prices in the past six months, Yost said: "Even if oil price had remained stable we would still be looking at these areas of our business."

Global oil prices sank to their lowest level since April 2009 on Friday on persistent worry over a global supply glut.

Other companies operating oil sands mines in Alberta are Imperial Oil Ltd (TO:IMO), Suncor Energy Inc (TO:SU), Canadian Natural Resources Ltd (TO:CNQ) and Canadian Oil Sands Ltd (TO:COS), which is the largest-interest owner in the Syncrude project.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

All four said they have not reduced employee numbers at their projects.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.