Image courtesy of BP.

BP froze base salaries Monday throughout the company for rest of the year in response to plummeting oil prices.

The UK-based super major employs nearly 84,000 people and pays out a combined $13.6 billion in wages, pensions and benefits every year.

“The tougher external environment in 2015 means that our businesses and functions need to work… to take a number of measures in response to the harsh trading environment,” CEO Bob Dudley said.

Pay will be frozen across the group with “only a few exceptions for specific circumstances around the world.”

BP confirmed the move but did not provide any further details.

In December, BP said it will cut hundreds of jobs across its operations as part of a $1 billion restructuring plan designed to bolster profit margins as oil prices continue to slump.

Earlier this month the company cut 300 jobs in the North Sea where dwindling reserves and skyrocketing operational costs have put pressure on costly offshore projects.

Dudley said last week that low oil prices and volatility could last for up to three years.

“We have to plan on this [price] being down, and we don’t know exactly what level, but certainly a year, I think probably two and maybe three years,” Dudley told the BBC.

BP is also facing up to $13.7 billion in fines for violations of the Clean Water Act tied to the 2010 Deepwater Horizon spill.


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