03:20 GMT +309 December 2019
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    View of the logo of French oil giant Total in front of the oil refinery of Donges, near Nantes, in this December 20, 2013 file photo

    Oil Plunges, So Does Oil Giant Totals Profits and Staff

    © REUTERS / Stephane Mahe/Files
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    French oil giant Total reported intentions to cut jobs and sell assets due to the deep slump in oil prices.

    France’s oil and gas company Total S.A. announced plans to cut 2,000 jobs by 2017, as well as to sell assets at the rate of $5.5 billion in 2015 because of the unstable situation on oil market.

    Total said they planned to stop hiring new staff for production, refinery and petrochemicals operations as part of plans to reduce costs by $4 billion this year.

    The company also said they would aim to cut costs until it can turn a profit with an oil price of $70 a barrel. This decision was made after Total announced a net loss amounting to $5.66 billion in the Q4 2014 versus a net profit of $2.23 billion in the same quarter of 2013.

    “The restructuring plan shows the company’s determination to get to grips with the shift in oil markets without overreacting. We don’t gamble at the casino. We need a company that resists whatever the oil price is,” said Total’s Chief Executive Patrick Pouyanne on Thursday.

    With the implementation of the new projects, Total said they expect to raise the oil production by 8% in 2015.

    Total is Europe’s third-largest oil company. In 2015, Total was developing five large projects in Russia and owned a 12% stake in Russia’s largest independent natural gas producer Novatek.

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    Tags:
    Oil, France, plan, projects, oil prices, jobs, Oil slump, Total, oil company
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