Tullow Oil Ghana has confirmed that it has started consultations with some of its employees who are likely to be laid off in the coming months.
‘The extent of redundancies and organizational changes will be determined on case by case basis and may therefore differ from one Tullow operation to the other,’ a statement from Tullow Oil Ghana said.
According to the company, the move is as a result of challenges in the oil and gas industry which have taken a heavy toll on crude oil prices.
‘It is incumbent on Tullow as a prudent and responsible operator to undertake a global review of its operations to ensure business efficiency and cost reduction.’
There are reports that the majority of the workers who will be affected would be Ghanaians but Tullow has insisted that it remains committed to its stated goals of local content and localisation in Tullow Ghana.’
‘Tullow will continue to invest in building the capacity of Ghanaians to perform highly skilled roles in every aspect of Ghana’s fast growing oil and gas industry,’ the statement added.
The continuous fall in crude oil prices on the world market has also affected government’s finances for the budget greatly.
Government’s revenue estimates for crude prior to the slump in oil prices was pegged at GHC4.2 billion or 3.1 percent of GDP.
It pegged the figure at $4.2 billion on the assumption that crude oil would trade at $90 per barrel.
However, the price of a barrel of crude has hit as low as $49 since government’s projection.
President Mahama early this week announced the decline in oil prices will cost the country about $700 million in oil revenue.
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