ANCHORAGE, Alaska (AP) — ConocoPhillips Alaska plans to cut about 95 jobs following its $9.7 billion acquisition of a Texas oil and gas company.
The workers will be laid off or accept voluntary severances, the Anchorage Daily News reported Monday.
The decision by the state’s largest oil producer, which has 1,100 Alaska employees, was related to the acquisition of Concho Resources Inc., ConocoPhillips spokeswoman Natalie Lowman said in an email.
“This past year has emphasized the need for our company to stay focused on cost and become more efficient in what we do,” Lowman said. “With the acquisition of Concho Resources, we have revisited our overall structure and that has resulted in job losses companywide.”
Lowman said she did not have information on how many of the affected employees are Alaska residents or how many of the positions are on the North Slope or in Anchorage.
Alaska residents make up about 85% of ConocoPhillips Alaska’s workforce, she said.
“Workforce changes like this are always difficult, but we care about every employee affected and will assist them with out-placement services and other associated benefits,” Lowman said.
The job cuts aren’t related to recent court decisions, Lowman said.
The 9th U.S. Circuit Court of Appeals on Saturday halted winter work at Willow field in the National Petroleum Reserve-Alaska, a large ConocoPhillips oil prospect in northern Alaska. The work stoppage will affect 120 employees and contractors, the company said.
The jobs ConocoPhillips is cutting may be some of the best in Alaska’s oil patch because large producers typically pay more than smaller oil companies or support firms.
“Those are a loss of quality jobs that are year-round, and in some cases, have been around for a while,” said Neal Fried, an economist with the Alaska Department of Labor and Workforce Development.
The cuts are relatively small compared with losses the state has already faced. The sale of BP’s Alaska assets to Hilcorp Alaska LLC involved many more employees, Fried said.