BSJV: No job cuts

National 1 minute, 18 seconds


BRUNEI Shell Joint Venture Companies (BSJV) maintained yesterday that they currently have no plans to lay off staff, after Shell Malaysia announced on Tuesday that it would cut 1,300 jobs over the next two years.

BSJV assured that their stance, first issued in a statement at the beginning of August, has not changed.

The companies will continue to focus on “enhancing their efficiencies” over cutting manpower, to remain robust amidst a global slump in oil prices.

Brent crude, the global benchmark for oil, sat at US$48 a barrel yesterday, compared to just over US$95 in October last year.

Prices have fluctuated between US$44-55 over the past two months.

Shell Malaysia’s cuts are a result of its transformation programme set out for their upstream division.

Shell Malaysia chairman Iain Lo said on Tuesday that continuing business as usual was “not sustainable”.

“Shell Malaysia is preparing itself to be more competitive in a low oil price environment. We are taking difficult, but necessary action,” he said.

“We have a strategy going forward, anchored on our scale and competitiveness in the upstream and leveraging our leading brand in the downstream.”

Brunei’s exports in July fell 47.8 per cent to $647 million on a year-on-year basis, owing to both a decline in price and trade volume for oil and gas.

Shell Malaysia’s cuts follow Royal Dutch Shell’s decision in July to axe 6,500 jobs, a move described by its chief executive officer as necessary for the oil giant to remain “resilient and attractive” in an environment where oil prices could remain low.

The Brunei Times