Following the announcement that investments will be reduced, employees at Aker BP will be informed how many must leave the company due to lower activity, among other things. This will happen after Easter, and suppliers will also be hit.
After going through an already strained period, oil service firm Aker Solutions has seen a significant downturn in economic activity since the coronavirus broke out, as is evident in the annual report, which also reveals a major pay cut for CEO Luis Araujo.
Oil firms have made broad cuts in their planned investments for the year. This has already entailed terminations of contracts with rig companies, and more will follow, analysts predict speaking to Norwegian media.
Oil supermajor Total's Danish subsidiary has launched "extensive measures" in the fight against coronavirus, says Managing Director Patrick Gilly. The company has "a very low number of confirmed covid-19 cases, and the few affected persons are currently in quarantine."
Friday, oil holds its gains after US President Donald Trump stepped into the price war between Saudi Arabia and Russia. In Texas, the main oil regulator proposed the state could coordinate the oil cuts with the feuding producers .
Investments could drop by up to 30 percent in the British oil and gas sector during 2020, industry association predicts, as a result of the coronavirus and a dramatic drop in the oil price. The sector is in a "paper-thin" position, CEO says.
The price of a barrel of oil currently hovers at below USD 28 after going by close to 50 percent in March. Recently merged oil company Wintershall DEA now lowers its investment level for 2020 significantly.
In Norway, employees in the oil sector are now feeling the consequences of the oil plunge, as up to 1,000 have already been told they will be sent home temporarily, union tells E24. And there are more to come.
Coronavirus and a dispute over the oil price between Saudi Arabia and Russia triggered significant price drops on stock exchanges in the past week. Danish and Norwegian shipping and offshore shares also took a tumble. But one sector in particular saw share prices going up.
Norway's state-run export bank Giek loaned NOK 59 billion to the oil and offshore industry. Now, the CEO admits that the bank holds some responsibility in the crisis and that the fund is set to lose billions, writes Dagens Næringsliv.