Chevron to streamline organization in Indonesia
Monday, January 25 2016 - 04:07 PM WIB
Chevron Corp, US energy giant, plans to streamline its organization in Indonesia as part of efficiency measures to cope with the impact of the oil price drop.
Director General of Oil and Gas IGN Wiratmaja said Chevron will merge all its activities into one organization. At present, the firm operates in Indonesia through two subsidiaries, namely PT Chevron Pacific Indonesia (CPI) based in Riau province and Chevron Indonesia Company (CICo) based in East Kalimantan.
Wiratmaja however denied rumors that Chevron planned massive layoffs as part of the merger.
?It is not true that Chevron plans a massive layoff. It only plans to merge its organization from two at present into one. Aa a result, there will be some overlaps in positions,? he said.
Meanwhile, Minister of Energy and Mineral Resources Sudirman Said said the layoff plans in the oil and gas upstream sector would not affect the national lifting target. All oil and gas contractors are obligated to meet the targets set in the Work Program & Budget (WP&B)
?What I know is that the contractors do not lower their targets, but only carry out efficiency. They may carry out cost saving but the target should be achieved,? he said.
Editing by Johannes Simbolon