BP cuts staff, sees risks at oilPosted by Vargas Kvist on February 24th, 2021 MOSCOW - Russia's TNK-BP, half-owned by oil significant BP, is reducing downstream organization team at its head office and anticipates oil manufacturing to suffer if oil prices do not recoup in 2009, a business exec stated on Thursday. Alexander Kaplan, vice-president of TNK-BP, told a press conference the company would certainly cut its head workplace's downstream organization team by 15 percent to 250 individuals prior to the end of the year. He said Russia's 3rd largest oil manufacturer was working on an assumption oil costs would stay -$ 70 per barrel next year. Production can endure if rates dropped listed below , he stated. " We have down payments which are under the danger of closure ... because every lots of oil produced generates a loss," he said. Russian production is going to a very first decline this year after a decade of development as companies like TNK-BP face down payment depletion and also can not manage introducing brand-new fields as a result of a hefty tax obligation take. Russian companies have continuously contacted the federal government to sharply lower oil export duties as oil costs have been falling in the previous months quicker than the government-adjusted responsibilities, therefore pushing the firms into losses. Kaplan stated: "2008 was the most effective year in the business's background ... Today we currently comprehend that next year will be extremely various. It will certainly be difficult for us as for any kind of various other Russian firm." "Today we do not have funds for business projects, for (products) result high quality renovation. We just have funds to support (operations). bhmt scale inhibitor impacts refining and to a specific degree - advertising and marketing as well as production," he added. Kaplan said the business would need to reduce financing of its refineries' innovation programs if oil prices did not recover. TNK-BP still intends to go ahead with some large upgrades of its Ryazan, Saratov and also Yaroslavl plants, but could not fulfill due dates established by the federal government to switch to harder European Union items high quality requirements. "In fact, we don't have funds to change our refineries (to brand-new requirements) that have been authorized. I assume this trouble is rather serious. If we do not satisfy high quality criteria, I will not be able to sell my items," he stated. He likewise said TNK-BP had no strategies to cut exports in November and December. The Russian government purchased oil firms to resume complete shipments after they considerably reduced export plans, mentioning really high export tasks. Kaplan said TNK-BP's last capital investment strategy would be approved at a board conference in December.Like it? Share it! More by this author |