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Tue 8 Nov 2016 10:48 AM

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Qatar Petroleum said to plan further cost reductions

Company needs to increase efficiency amid low oil price environment, says CEO

Qatar Petroleum said to plan further cost reductions
Saad Sherida Al Kaabi, President and CEO of Qatar Petroleum. (Karim Jaafar/AFP/Getty Images)

Qatar Petroleum is aiming to reduce its operating costs amid persistent low oil prices, its president and CEO was quoted as saying this week.

Saad Sherida Al Kaabi told the ADIPEC conference in Abu Dhabi that QP and its subsidiaries had taken measures to cut costs in the past year – though he did not discuss the specifics – but further work is required, reported Gulf Times.

He said: “We need to focus on improving efficiency in our operations, while maintaining our highest HSE (health, safety and environment) standards.

“We also need to pay attention to reducing our operating costs as much as possible, or eliminating expenditures that do not add to our profitability.”

Last year, the state-owned oil and gas giant was reported to have reduced its staff numbers in a restructuring and exited all non-core businesses.

He said at the time: “While we have no control over markets and prices, we do have control over our costs and expenditure. This will be a stable organisation going forward.”

Gulf Times said rating agency Moody’s had noted earlier this year that QP is expected to show “robust” financial profile this year “as its depth and quality of cash flows enable financial flexibility even in the case of low sustained oil price levels”.

QP’s breakeven prices on most of its projects are considerably lower than in most other hydrocarbon producing countries, it was said.

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