Coronavirus company news summary – ConocoPhillips to lay off 500 jobs – Dorado oil field FID plans deferred to 2022

3 December 2020 (Last Updated December 3rd, 2020 10:20)

3 December

US oil producer ConocoPhillips is planning to retrench around 500 employees at its headquarters in Houston, to ensure staffing is commensurate with the operations. The company registered $2.93bn in losses from January to September, against $6.47bn profit made in the same period in 2019. Oil and gas companies across the globe have cut thousands of jobs as the Covid-19 pandemic impacted oil demand and prices.

The worldwide oil demand is expected to recover to pre-corona levels reaching 100 million bpd in the next two years, according to US-based shale operator Pioneer CEO. He added that OPEC needs to bail out the oil sector by enforcing production cuts of between three and five million bpd next year. Pioneer is also planning to increase oil output by 5% in 2021 subject to global demand recovery.

Australian energy major Santos has postponed its plans for making final investment decision on its Dorado oil field to 2022, due to the impact of Covid-19 pandemic. The production from the oil field, which has a capacity of 75,000 to 100,000bpd, is expected to commence in 2025. The FEED work on the Dorado field is expected to start in the first half of 2021, while the development cost on the project is estimated at $2bn.

The oil production in the US state of Colorado declined by 13% from the corresponding period in 2019, registering the sharpest four-month fall in 19 years. The state currently has a mere four oil and gas rigs in operation, against a minimum of 16 rigs operating simultaneously before the Covid-19 pandemic struck. The employment in the sector also fell by 18% in September, compared with the same period last year.