Chevron Corp. will consolidate five oil and gas research and technology organizations in California and Texas into one unit.
The goal is to cut more than $60 million/year in operating and staff costs while improving the application of technology to petroleum operations.
The change reflects a companywide campaign to reduce costs and improve competitiveness (OGJ, May 11, p. 26). It also responds to sharp cuts previously announced in Chevron's U.S. oil and gas operations, a shift to more intensive recovery from existing reservoirs, and an increased focus on opportunities outside the U. S.
The new unit, Chevron Petroleum Technology Co. (CPTC), will have unified responsibility for technical services and research in oil and gas exploration and production.
The new unit will have about 1,100 employees, or about 450 fewer than the five units' current total, reflecting the downsizing of U.S. upstream operations.
About one third of the employees in the five organizations have agreed to voluntarily leave the company under a temporary enhancement of the Chevron retirement plan. About two-thirds will either be redeployed to other positions in Chevron or terminated.
Effective Aug. 1, the new CPTC will combine Chevron Oil Field Research Co., La Habra, Calif.; Chevron Exploration & Production Services Co., Houston; Chevron's Drilling Technology Center, Houston; and Upstream Information Systems, Houston; as well as the Upstream Technology Group of Chevron Research & Technology Co., San Ramon, Calif.
The new company will have its headquarters in Houston, but to minimize moving costs and service disruptions, most of the technical facilities and installations will stay where they are for now.
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