Repsol is reportedly planning to furlough up to 830 staff at its A Coruna and Puertollano refineries in Spain due to the pandemic and concerns about energy transition.
The move comes due to an ‘unprecedented’ fall in fuel demand as a result of increasing Covid-19 pandemic restrictions, reported Reuters.
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The energy firm was cited by the news agency as saying: “It is a sustained situation that has kept fuel consumption for transport much lower than expected.”
According to the company’s trading statement, profit dropped on refining products that come into Repsol’s Spanish refineries.
The firm’s profit on refining dipped in the first quarter of 2021 to $0.2 per barrel compared to $4.7 per barrel in the previous year, Reuters reported, citing the firm’s trading statement.
Additionally, the latest decision is supported by the uncertainty caused due to the global transition towards clean energy while phasing out fossil fuels.
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By GlobalDataProceedings have already commenced for the firm’s 618 workers at Puertollano refinery and 212 employees at the A Coruna refinery.
For up to six months, the affected employees will receive support from Spain’s ERTE government furlough scheme.
Employing around 1,000 professionals, the A Coruña refinery has an estimated capacity of 120,000 barrels of oil per day. It undertakes extraction, refining and LPG activities.
The refinery also comprises various supporting facilities for cogeneration, storage, a wastewater treatment plant, and a maritime terminal.
With a 7.5Mtpa capacity, the Puertollano refinery has five major production areas, which include refining, chemicals, lubricants, asphalts, and LPG.
Last month, Repsol-majority owned oil refiner Petronor reportedly furloughed a third of its 900-strong workforce.
