Chevron cuts jobs following completion of Hess acquisition

The Stabroek Block, located off the coast of Guyana in the Atlantic Ocean, is a key area where the merger will have a notable impact. Credit: Chevron.

Chevron has significantly reduced its workforce, cutting 575 positions in the Houston area, according to a Reuters report, citing a Texas Workforce Commission filing.

As per a Worker Adjustment and Retraining Notification dated 18 July, the US energy giant terminated employees following the official completion of its $55bn acquisition of Hess.

IT staff from both Chevron and Hess worked together to plan the integration.

Affected Hess employees were given the option to request severance packages.

The layoffs are expected to take effect on 26 September, according to the notice.

Chevron CEO Mike Wirth stated that combining technology and employees from both companies is expected to take a few months.

The Chevron-Hess merger brings together more than two centuries of industry experience, positioning the merged entity to better meet the global demand for energy.

The Stabroek Block, located off the coast of Guyana in the Atlantic Ocean, is a key area where the merger will have a notable impact.

Chevron now holds a 30% stake in this region, which boasts more than 11 billion barrels of oil equivalent in discovered recoverable resources.

This block is recognised as one of the most significant oil discoveries of the 21st century, with its high-quality crude oil being cost-effective to refine.

In the US, the established operations of Hess in North Dakota’s Williston Basin, which includes the prolific Bakken Formation, complement Chevron’s existing projects in the Permian and DJ Basins. The combined shale and tight portfolio now spans more than 2.5 million net acres.

The Gulf of America is another strategic area where the merger will have a considerable effect.

Both companies have a history of deep-water partnership in this region, which is advantageously situated near global shipping lanes and the US Gulf Coast – one of the world’s largest energy markets.

Furthermore, Hess’ natural gas assets in South East Asia add to Chevron’s long-standing presence in the region, dating back to the 1930s.

This includes a joint venture in Thailand and the operation of a fuel import and distribution network under the Caltex brand.

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