Oil major BP said it would reduce the active rig count at its operations at Prudhoe Bay on Alaska’s North Slope leading to more than 200 job losses.
The company said lower oil prices had forced the company to reduce the number of rigs in the region from five to two.
According to reports in The Alaska Dispatch News, the decision comes as BP Exploration Alaska announces a loss of $194million it its annual reports to the SEC (Securities and Exchange Commission).
A spokeswoman for BP said the decision was taken after discussions with ExxonMobil and ConocoPhillips.
She said: “We were asked to substantially reduce our expenses and our capital, and this is part of that.
“In this low oil price environment, you have to review the appropriate level of activity.”
It’s understood oil production at Prudhoe Bay would be affected by the move, with work being done to mitigate the effect of this.
Two rotary drilling rigs and a coil drilling rig will be shut down in the coming months.
Rebecca Logan, general manager at the Alaska Support Industry Alliance, said the decision will affect between 200 and 300 jobs directly.
BP is expected to continue to operate one coil and one rotary drilling rig.
In other areas of the North Slope, Caelus is operating two drilling rigs, ConocoPhillips is operating four and Hilcorp is operating one.
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