Chevron cut another 800 jobs in Thailand

Chevron ThailandThe US oil company Chevron cut another 800 jobs in Thailand this year, part from the restructuring and cost reduction plans, which aims to save 500 million USD against the falling oil prices. The new wave of job cuts will start on August 1, but will not affect the exploration and production of the company. Chevron Thailand employs about 2,200 staff and another 1,700 contractors, but not yet known from which division will be the sacked employees. The company is trying to reduce the costs worldwide against record low oil prices and big quarterly loss. Chevron promised that all the cut employees will receive the previously agreed social benefits.

“The cuts will help the company to continue operations in Thailand”, said the president of Chevron Thailand Exploration and Production, Pairoj Kaweeyanun. “Chevron has submitted proposals to the energy ministry on the concessions and hoped for a government decision in early 2017 to ensure it could make investments needed to maintain production”, added he.

Chevron is the largest oil and gas producer in Thailand, supplying about half of the Southeast Asian country’s natural gas demand. Thailand relies on gas to fuel around 60% of its power generation capacity. Chevron operates several oil and gas licence blocks in the Gulf of Thailand and is in discussion with the Thai government on extending concessions for some of them beyond the expiry dates of 2022-2023.