Palpable fear has gripped the Nigerian staff of Chevron and Shell as the two multinationals begin compilation of 8,000 names for sack.
According to New Telegraph, plans are underway by Chevron and Shell to sack 8, 000 staff as the accounts of the oil firms slips into red.
Further checks by this newspaper at the weekend revealed that managements of the two oil companies have begun to compile names of those who will be affected in Nigeria. This action, sources at the two oil firms told this newspaper, was occasioned by earlier correspondences sent to managements of the companies’ subsidiaries in Nigeria.
“That is what everybody is talking about here,” a Shell staff said after his anonymity was guaranteed. “The situation is even worse for some of us who are nontechnical staff,” his Chevron’s counterpart added. He continued: “Up till now we do not know how many staff in Nigeria will be affected but we are aware that the list being compiled has a mandate to include about 95 per cent of staff from finance: audit and accounting; human resources, government, public relations and communications among others. “The remaining five per cent will make up technical staff, who are due for retirement and those with incriminating memos in their files,” he said.
The New York Times had reported penultimate Sunday that Chevron would axe 7,000 staff in addition to the 1,500 it announced early this year while Shell, according to Reuters, also plans to sack 1000 more staff different from the 6,500 it announced for sack in the first quarter.
Although the two multi-nationals did not give a break-down of how many staff in their Nigerian operations will be affected, Chevron said on its website that Nigeria “is an important part of Chevron’s business globally” while Shell, which is also the biggest oil firm in Nigeria in terms of assets and production, “produces substantial volume of its global output from Nigeria.”
Like Chevron and Shell, other international oil companies (IOCs) at the weekend posted unprecedented losses in the third quarter, which is the worst since the downturn started. The trio of Chevron, Shell and Eni, with heavy assets and production in Nigeria, posted $12 billion losses in three months as their outlooks dimmed.
While Chevron’s losses hit $3.6 billion, Shell posted $7.4 billion loss after heavy write-offs and Italian major, Eni, reported $1 billion loss. Exxon Mobil, the largest American oil company, reported a loss of $3.9 billion for the third quarter.
It posted $4.2 billion compared with $8.1 billion a year earlier. ConocoPhillips recorded $1.1 billion loss as France’s Total also had a sharp drop in profit.
Shell, which Reuters said had the lowest cash flow break-even point at around $66 a barrel, said it would axe 1,000 additional jobs after the 6,500 job cuts announced earlier this year. Shell’s Chief Executive, Ben van Beurden, who gave the third quarter report, said at the weekend that Net profit excluding identified items collapsed to $1.8 billion from $5.85 billion a year ago.
Shell posted a third quarter loss of $7.4 billion, according to Beurden, hit by a massive $8.2 billion charge after halting its exploration in Alaska’s Arctic sea and a costly oil sands project in Canada.