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 February 4, 2016 - 8:19 PM EST
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Shell to Cut Jobs in Nigeria, Other Countries

Royal Dutch Shell, the parent company of Shell Petroleum Development Company of

(SPDC), has confirmed it will reduce 10,000 staff and direct contract jobs across its global companies in 2016.

Shell which employs around 90, 000 in more than 80 countries said it will cut the jobs to further reduce costs amid a severe slump in oil prices.

Shell's Chief Executive, Ben van Beurden, said in a webcast on its 2015 fourth quarter and full year results yesterday that the plan was part of holistic changes the company was undertaking to restructure and refocus its operations this year.


spokesperson for Shell, Precious Okolobo, declined to say how many employees will be affected in
but industry sources say many of them may be contract jobs.

The Shell chief executive said the company was making substantial changes by reorganising its upstream, reducing costs and capital investment to enable Shell respond to lower oil prices.

Beurden who said the planned merger between Shell group and BG Group was expected to be completed in a few weeks, revealed that the company has exited the Bab sour gas project in

Abu Dhabi
, (
) and is postponing final investment decisions on LNG Canada and Bonga South West in deep water
in 2016.

Meanwhile, the main oil industry workers' unions have vowed to resist attempts by local and international oil companies to retrench workers under any guise.

Their position was made known after meeting with the minister of State for Petroleum Resources and Group Managing Director of the NNPC Dr. Ibe Kachikwu.

Speaking after the meeting, the National President of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Igwe Achese, said the union will resist any attempt to cause job losses in the oil and gas sector.

He told Daily Trust that: "Vehemently, we are going to resist any attempt [to sack workers]. We have advised service companies, multinational companies that are in the act of outsourcing and contracting that will portend loss of jobs to Nigerians."

According to him, the association will say no to any sack because that is not what the present administration is all about.

The Director, Centre for Petroleum, Energy Economics and Law, University of Ibadan, Prof. Adeola Adenikinju said it is hard to fault oil companies for cutting jobs because they are out to make profit.

However, Shell spokesman in

, Bamidele Odugbesan told our correspondent in
yesterday that 75percent of the figure being quoted had already been taken care of in the previous year.

Besides, National Public Relations Officer of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Comrade Emmanuel Ojugbana told our correspondent that the union had confronted the multinational oil company in

over the sack issue, but denied such move.

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Source: News (February 4, 2016 - 8:19 PM EST)

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