Advertisement

Chevron Plans to Consolidate 5 Operations : Energy: The merging of the oil and gas research and technology groups will erase up to 450 jobs.

Share
TIMES STAFF WRITER

Continuing its restructuring program, Chevron Corp. announced Monday that it will combine five oil and gas research and technology groups into one unit in a move expected to cut up to 450 jobs and slash annual expenses by more than $60 million.

Chevron Petroleum Technology Co., the new entity, will direct scientists and engineers in the exploration for oil and gas.

The jobs will be eliminated from the five former groups by Aug. 1.

“The cutbacks will be difficult for our people,” said Bill Crain, corporate vice president of exploration and production, “but we must focus our technology efforts more clearly to improve the long-term competitiveness of the company.”

Advertisement

The new unit will replace Chevron Oil Field Research Co., based in La Habra; the Upstream Technology group of Chevron Research & Technology Co., based in San Ramon; and Chevron Exploration & Production Services Co., the Drilling Technology Center and Upstream Information Systems, all based in Houston.

The new combined company will be based in Houston, though most of the labs and other facilities will not be relocated for the time being.

About a third of the affected workers have already agreed to leave under an enhanced retirement plan. The others will be transferred within the company or will be laid off.

Operations where some workers could be transferred, said company spokesman Mike Libbey, are the Alba oil field in the North Sea off Britain, which starts operations next year, and new producing units off mainland China, in Papua New Guinea and the giant Tengiz field in Kazakhstan.

Advertisement