Drilling venture Vietsovpetro to cut 2,000 jobs as oil shock continues: report

Thanh Nien News

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 A oil rig of Vietsovpetro at Bach Ho oil field off the coast of Vung Tau. Photo: VNA
Vietsovpetro, a joint-venture between PetroVietnam and Russia's Zarubezhneft, plans to cut its workforce by another 2,000 employees, after sacking 600 people in the past two years as oil prices keep falling, local media reported Monday.
The company will have a staff of less than 5,000 over the next five years, news website VnEconomy quoted CEO Tu Thanh Nghia as telling Nang Luong Moi, a newspaper of the Vietnam Petroleum Association.
The job cuts were requested by the Russian partner as part of Vietsovpetro's ongoing restructuring efforts, he said, adding that the company really needs to make the move so it can cope with the prolonged oil shock.
Vietsovpetro, which is on the verge of "running out of money" by the end of April, has also proposed closing some of its oil fields, especially those which are being operated with high costs, Nghia was cited as saying.
The proposal, however, was not approved by PetroVietnam and Zarubezhneft, he said.
Last month Nghia reported that Vietsovpetro faced a budget deficit of around US$230 million even after numerous efforts to cut costs, including shutting down two of its subsidiaries and cutting 400 jobs. 
Benchmark Brent was traded at $33.41 per barrel on Monday, down 2.3 percent from February 1.

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