EMEA News
Collapsing Oil May Force Maersk to Close Some Oil Sites
The continued falling price of oil may lead Maersk Oil to close some oil sites and operations, Reuters reports.
If prices remain at $60 per barrel, the company will be forced to close some production sites earlier than expected, said AP Møller-Maersk CEO Nils Andersen, who also said continued low prices would reduce oil revenues by a third from its level in 2013.
The company is now turning to reducing operational costs by focusing on exploration at sites where production costs are low.
"As all costs, except taxes, are fixed it is obviously something we have to take very seriously," Andersen said.
Maersk Oil produced 238,000 barrels per day in this third quarter of this year, and is aiming for 400,000 barrels in 2020.
"I think it is very important to say to the market and the organisation that we have these ambitions, but also that if they are not reasonable any longer we would have to adjust to the world situation," said Andersen.
Maersk's box shipping division, Maersk Line, said recently it was not profiting from low bunker prices due to bunker adjustment factor surcharges.
