EOG already started implementing a programme of salary cuts and the cancellation of non-core contracts. Credit: skeeze from Pixabay.

Europa Oil & Gas Holdings (EOG) has announced plans to cut costs in the wake of the coronavirus (Covid-19) pandemic, stock market volatility and the oil price crash.

EOG noted that it aims to conduct a comprehensive review and a phase of cost reductions across the company in order to retain enough cash to fund current and upcoming activity, including the Wressle field development project.

Farm-outs will continue to be sought, while work programmes in Ireland and Morocco are due to be reduced.

The Wressle oil field development project lies in North Lincolnshire Licences PEDL180 and PEDL182. It was discovered by the Wressle-1 well on the PEDL180 licence in 2014.

Europa holds a 30% working interest in the licences. Other partners include Egdon (30%), Union Jack Oil (27.5%) and Humber Oil & Gas (12.5%), with Egdon serving as the operator of the project.

EOG executive chairman and interim CEO Simon Oddie said: “These are challenging times for the oil and gas exploration and production industry with the combination of market turbulence and depressed oil prices.

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“We have responded by making appropriate cost savings and adjustments in the business whilst maintaining the integrity of our core strategy. Further economies will be made if conditions do not improve in the medium term.”

The company has already implemented a programme of salary cuts and the cancellation of non-core contracts.

It plans to delay its current work in Morocco, which mostly involves the reprocessing of 3D seismic data.

Two weeks ago, EOG, Union Jack Oil (UJO) and other partners described the Wressle oil field development project as ‘economically robust’ in the current low oil price environment.