Murphy Oil Corporation says the recent drop in crude oil prices is responsible for its decision to close its longstanding office in Calgary and relocate its corporate headquarters from El Dorado, Arkansas to an existing office in Houston, Texas.
The independent oil and natural gas exploration and production company said in a Wednesday news release that the Calgary office is home to approximately 110 employees, while the El Dorado office has about 80.
According to Murphy Oil, the company has taken several steps in the past several months to reduce its capital expenditures by 50 per cent, including lowering the company’s dividend by 50 per cent (or $76.5 million on an annualized basis) and lowering executive officers’ salaries on average 22 per cent — with the chief executive officer’s reduced by 35 per cent.
“We realize, reluctantly, that we need to consolidate our offices to capture additional cost savings to remain competitive in this unprecedented industry environment,” chairman of the board Claiborne P. Deming said.
“We simply do not have a choice and came to this decision only after exhausting all other cost-saving measures.”
Vice president of communications, Kelly Whitley, said Murphy Oil has been in Canada for more than 60 years.
The headquarters move won’t change the company’s field operations, Whitley said, which take place in Alberta and B.C.
“The company recognizes the hardship this decision causes to many in El Dorado and Calgary, and we are committed to treating all those impacted consistent with past practices and plan to offer appropriate severance arrangements,” president and CEO Roger W. Jenkins said.
“These actions will not impact our field operations in the U.S. and Canada, and we anticipate these office closures to be completed early in the third quarter 2020.”
Some of the Calgary employees will be offered the option to transfer to Houston; some positions will be eliminated.
Whitley said the decision was based on global macro-economic conditions and was not a political move.
Comments