Cenovus job cuts to total 440 in 2016

250 positions to go at its Calgary and field offices

CALGARY A total of 440 jobs will be cut at Cenovus Energy Inc. this year as a result of continued low oil prices.

The Calgary-based oil producer announced in February it would be cutting staff in the months ahead. Cenovus posted a loss of $641 million in the fourth quarter.

Spokesman Brett Harris confirmed Thursday that 190 contractors have already left the company and an additional 250 positions at its Calgary and field office locations will be eliminated this month.

“These are really difficult decisions, but very necessary in this economic environment,” Harris said.

“You have to match your work with your workforce.”

Once the cuts are complete, Cenovus will be left with 3,600 contractors and employees — a 31 per cent reduction in its overall head count since the end of 2014.

Harris said while the economic climate remains challenging, Cenovus believes it has made the cuts it needs to make to weather the storm.

“As a result of making some significant cost reductions over the last year and a half, we believe we’re now in a financially resilient situation to make it through what could be another year of pretty low oil prices,” he said.

Also on Thursday, Arkansas-based Murphy Oil Corp. — which has an office in Calgary — confirmed it is making cuts across all of its operations.

Spokesperson Kelly Whitley declined to say how many people in total would be affected.

“Over the course of the past year and a half, Murphy has taken actions to lower costs in direct response to the negative impacts of low commodity prices,” Whitley said in an email.

“A reduction in force is an action that we have undertaken. Head count has been lowered across all functions in every location to match our lower capital spend.”

Murphy Oil’s website says the company currently has 1,200 employees worldwide.

In January, Murphy announced it would sell two gas plants and related pipeline assets in northeastern British Columbia to Calgary-based Enbridge Inc. for $538 million.

It is using the funds to help pay for a $475-million joint venture with Athabasca Oil Corp. to exploit the Duvernay play in Alberta.