Low oil prices make the oil producing companies reducing their staff. In early December 2014 the biggest company at the Azerbaijani market BP-Azerbaijan (ensures 80% of oil and condensate production in Azerbaijan) announced the forthcoming layoff of its staff. Later on Caspian Barrel found out that since early 2015 the company is going to lay off about 15% of its employees.
Some other sources from the oil industry also said that in quarter 1, 2014 the US Halliburton company, one the biggest oil service companies, is going to lay off its staff in Azerbaijan.
In December 2014 it managed to buy another oil and gas giant contractor Baker Hughes company. The merger of the companies will start soon. However, the low oil prices have made Azerbaijan to reduce the planned volume of works in 2015: oil companies decided to save on the drilling and service works. “Therefore, there is nothing surprising in reduction of staff,” said the same source.
The world biggest oil service company Schlumberger is going to lay off 9,000 employees or 7% of its staff in response to reduction of oil prices.
After 60% reduction of world prices since June 2014 Schlumberger’s clients intend to reduce the investments and the volume of drilling in 2015. The company plans to reduce the investments from $4 to $3 billion in 2014.
Schlumberger has been operating in Azerbaijan for almost 20 years and its employees perform service works on the wells both onshore and offshore.
