Australia’s Oil Search slashes 34% workforce

(Reuters) – Australia’s Oil Search on Wednesday said it has reduced its total workforce by around 34% under its cost restructuring review to cushion the blow from subdued oil prices as a result of the coronavirus pandemic.

The Papua New Guinea-focused oil and gas producer said full time employees have currently been reduced to 1,222 from 1,649 in mid-March, with another 137 moving out by year end.

The firm expects production costs to be about $10.50/boe in 2020, compared to a previous cost guidance of US$11-12/boe, it said in a statement.

(Reporting by Sameer Manekar in Bengaluru; Editing by Himani Sarkar)