Trinidad and Tobago-focused Trinity is undergoing a multi million dollar cost reduction program that will include a management shakeup.
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Image from Trinity. |
According to Trinity, as part of its ongoing strategic review process, and in light of the company’s current funding position and the low oil price environment, Trinity has identified a number of cost reduction measures, which include management changes and a redundancy program across functions.
As a result, chief operating officer Craig McCallum will depart Trinity effective 31 March 2016.
All together, Trinity will see more than $1.6 million savings a year in its general and administrative (G&A) costs. In addition, it is expected to save more than $0.3 million in the current financial year, although this will be offset by directly related cash costs of approximately $0.2 million. G&A costs have already been reduced to $5.7 million for 1H 2015 versus $10.4 million for 1H 2014, Trinity said.
Trinity is also making headway with a reduction of field operating costs, and remains on target to reduce operating costs to $26 million for the full financial year 2015, compared to $33 million in 2014.
“While we cannot control the price of oil, we are working hard to manage production levels on a constrained capital budget while reducing those costs that we can control. The measures we have taken to reducing staffing across the business reflect the level of investment activity justified by the current oil price,”Joel “Monty” Pemberton, Trinity CEO said.
In July, Trinity terminated a $23 million deal with Centrica to acquire 80% of the British company’s interest in two blocks. No reason was given for the termination.
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