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May 29, 2020

Coronavirus company news summary – Subsea 7 to lose nearly 25% of staff – Oil glut may continue to next year

By Matt Farmer

29 May

Oil services firm Subsea 7 has decided to trim its global workforce by nearly a quarter as part of its cost reduction programme. The move will make around 3,000 employees redundant by the end of the second quarter of 2021. The company is aiming to preserve its cash flow to strengthen itself through the coronavirus pandemic.

Russia’s Gazprom Neft has reported a loss of $194m (RUB13.8bn) in the first quarter of the year, blaming weak Russian currency and low oil prices. In the same period last year, the company registered a profit of RUB107.9bn. Gazprom Neft also reported its quarterly revenue fell by 12% compared to the same time last year.

Earlier this week, Offshore Technology reported on the difficulties Gazprom is facing in Eastern Europe.

The US Department of Interior is planning to enable the drilling companies to defer royalty payments on oil and gas production from federal lands. Reuters cited the White House website as saying the proposal is currently being reviewed.

The global oil glut, developed after demand fell during the initial outbreak of Covid-19, may extend to next year if economic recovery is slower, Federal Reserve Bank of Dallas president Robert Kaplan told Reuters. Since the beginning of this year, crude oil prices have plunged nearly 45%.

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