A merger between German oil firms Wintershall and Dea will result in the loss of up to 1,000 jobs, the companies confirmed last night.
Wintershall said the merger should be completed in the first half of 2019 and would create annual synergies of £173 million.
But the firms will shed around 800 German and 200 Norwegian jobs.
The two companies currently employ around 4,200 people worldwide.
Petrochemicals firm BASF and financial holding company LetterOne said the combination would pave the way for the creation of one of Europe’s biggest exploration and production companies.
BASF will hold 67% of the shares in Wintershall Dea, with LetterOne taking 33%.
Both firms are currently seeking the appropriate government approvals to rubber stamp the deal.
Wintershall said it would reduce its workforce in Germany in “a socially compatible manner”, while Norwegian job losses are primarily due to the completion of large development projects.
Wintershall and Dea guaranteed no forced redundancies until June 30 2020, adding that they will not close any sites in Germany over the same period.
But the firm did reveal Dea’s laboratory and core storage facility in Wietze, Lower Saxony, will be relocated to Barnstorf and the Wietze location will be closed.
The oil and natural gas firm added that it expects to see a production increase of 40% by early 2020.
