13 May 2017, London — Bowleven Plc revealed Friday that it will be reducing staff numbers in a bid to cut costs.
A process to reduce overall U.K. headcount from 18 to 5 full-time employees is already underway, with the use of contractors anticipated to underpin any additional support needed. Streamlining of the company’s Cameroon headcount and costs has also commenced.
Once staff reductions and other cost rationalization efforts are complete, Bowleven’s board anticipates that the monthly group G&A costs will be reduced to approximately $0.35 million per month in the second half of 2017, compared to monthly group G&A costs of $0.6 million per month in the six months to December 2016.
In order to achieve these material cost reductions, the group expects to incur one-off costs in the region of $3-4 million during 2017.
“We are confident that these changes will allow the company to move forward on a more appropriate cost base, whilst retaining the necessary skills, relationships and capacity to progress a route to shareholder value at both Etinde and Bomono,” Eli Chahin, Bowleven chief executive, said.
*Rigzone
