Tullow Oil Kenya announces plan to fire some of its 650 staff
British-based oil explorer Tullow has issued a redundancy notice with respect to its staff members in Kenya, signalling massive job losses at the firm.
In an internal memo seen by Citizen Digital, the firm has pinned the expected job cuts to it’s worsening financial position having undertaken a thorough review to its business operations at group level.
“These factors have significantly affected the ability of the company to continue sustaining the high human resource wage bill. Resultantly, it is now inevitable that there may be job losses and redundancies at all levels and cadres of our organization,” read part of the memo undersigned by Tullow Kenya Managing Director Martin Mbogo.
The redundancy notice comes on the back of what has been a tough year for the British operator who let go both its Chief Executive Officer and Exploration Director in 2019 on the back of a depressed production outlook.
The explorer has for instance trimmed its output expectations for Ghana from declining crude stocks while in Guyana, tested crude samples have yielded an undesirable high sulphur content.
The firm, which discloses it’s full year earnings later this month, has since suspended dividend payouts with management embarking on a overall business review.
Tullow has a local staff base of 650 and has been the principal operator of Project Oil Kenya having entered the domestic scene in 2010 after signing agreements to gain 50 percent operated interest in five onshore licenses; 10BA, 10BB, 10A, 12A and 13T.
Late last month, the operator put up its entire stake in Kenya up for sale in a start to its market farm down ahead of the expected final investment decision (FID) in the second half of 2020.
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