Maersk Oil has revealed plans to reduce its establishments in Angola and the US due to low crude prices in the global market and the challenging market conditions for deepwater developments.

This will bring about the shutdown of the company’s Houston office and a decrease in the team in Luanda.

The decision is coming after the extensive and unending work to cut capex and improve returns of the Chissonga project in Angola. Alternatives consist of a future project developed together with other hydrocarbon finds in the same province.

“Chissonga, like many deepwater projects in our industry, remains economically challenged in the current market environment. Maersk Oil remains committed to the Chissonga project and we have evaluated multiple options to commercialize these resources in the best interests of our partners and the Angolan authorities,” Gretchen Watkins (photo), Maersk Oil’s COO said.

Out of about 100 employees and contractors affected by the changes, nearly 60 are in Houston and approximately 40 are in Luanda.

“In addition to work to reduce overall project costs we are also looking at options for a possible joint development. A further restructuring of the Chissonga project team is a necessary step on the path to securing a future development project for Maersk Oil in Angola. This difficult decision does not diminish our keenness to pursue the Chissonga project sanction in due course, provided we can achieve an attractive return on our investment,” she told Petroleum Africa.

Anita Fatunji