Talisman Energy to Cut up to 15% of Head Office Jobs

Talisman Energy Inc, the Canadian oil and gas company being acquired Spain's Repsol SA, plans to cut as much as 15 percent of staff at its Calgary head office as a result of collapsing crude oil prices, a company spokesman said.

 

Around 150 to 200 employees and contractors will be laid off, Talisman spokesman Brent Anderson said, and employees will be notified beginning this week.

 

Other Canadian producers that have already announced job cuts include CNOOC-owned Nexen Energy, Suncor Energy Inc and Royal Dutch Shell.

 

"With low oil prices we have reduced our 2015 capital spending plans and with that reduced activity comes the requirement to make (job) reductions," Anderson said. "No oil company is immune to the low oil price and we are no exception."

 

Talisman cut its capital spending this year to $2.1 billion, down about 30 percent from 2014 levels, joining a slew of other Canadian producers who slashed budgets as crude prices tumbled.

 

Benchmark U.S. crude prices hit a six-year low of $42.05 a barrel on Wednesday and have more than halved since last June.

 

Repsol is awaiting regulatory approval, expected mid-year, to buy Canada's No.5 independent oil producer for $8.3 billion. The Spanish producer will also assume Talisman's $4.7 billion long-term debt.