Qatar Petroleum plans to cut jobs and expenses amid market slowdown

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Two well-informed sources said that Qatar Petroleum, one of the largest energy companies in the world, is planning a new wave of job cuts and spending cuts to cope with the decline in demand for oil and gas around the world.

The global closures aimed at containing the Corona pandemic virus # global supply have shrunk sharply as global business activity stops, boosting economists’ expectations for a deep global recession.

The two sources said that Qatar Petroleum CEO Saad Al-Kaabi told the company’s employees in an internal memo that the planned labor cuts would be ready in the final after the Eid Al-Fitr holiday.

“Like all oil and gas companies, Qatar Petroleum is considering cutting spending because of the market slowdown … which will be weak for some time,” said one source, adding that the planned cuts would not affect energy projects.

Qatar is one of the most important players in the LNG market, with an annual production of 77 million tons. It plans to increase LNG production to 126 million tons annually by 2027.

Al-Kaabi told Reuters earlier in April that Qatar Petroleum would delay the start of production from its new gas facilities until 2025 after a delay in the bidding process, but would not reduce the expansion of the North Field, the world’s largest liquefied gas project.

Job cuts and planned costs will be the third wave of restructuring of Qatar Petroleum over the past six years. In 2015, the company said it cut its staff numbers as part of a restructuring and decided to exit all non-core businesses following a sharp drop in oil and gas prices that put additional financial pressure on Qatar.

In 2018, it merged the state-owned LNG producers, Qatar Gas and Ras Gas, into one company.

Al-Kaabi told Reuters in 2018 that the operating costs of Qatar Petroleum would decrease four billion Qatari riyals ($ 1.1 billion) annually thanks to the previous restructuring, which included the abolition of up to eight thousand jobs to simplify operations.

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