Offshore staff
OSLO, Norway – PGS is implementing further cost reductions in response to COVID-19 and related disruption in the oil sector.
Conditions have introduced unprecedented challenges to the seismic industry, the company said, leading to significantly lower activity levels.
By further adjusting its cost base while retaining its core global capabilities, the company aims to be in a position to scale up when demand resumes.
Earlier this year the company stacked three of its eight operated 3D vessels. It will now cut office-based personnel by around 40%, in addition to previous cost-cutting measures, reducing its annual gross cash cost run rate to around $400 million (compared with guidance of $600 million at the start of 2020).
In addition, PGS will group together all commercial activities, including its New Ventures unit, into the Sales & Services business unit, headed by Nathan Oliver. The new organization should be in place on Aug. 1.
06/08/2020
