SHARE
Genel Energy CEO Tony Hayward. Image courtesy of Energy Institute.

UK-based Genel Energy said Wednesday it will take a $480 million non-cash charge tied to exploration costs and cut its capital expenditure guidance and headcount to reduce costs.

The company dropped its capital expenditure guidance by 30 percent to between $200 million to $250 million, down 70 percent from its 2014 budget.

Most of the budget will be used to expand production at the Taq Taq and Tawke oil fields in Kurdistan, Market Watch said.

The $480 million non-cash charges are tied to exploration expenses incurred in Angola, Malta and Morocco.

The company, led by former BP chief Tony Hayward, expects to announce lay offs and implement other efficiency measures to lower administrative costs by 40 percent this year.

Details about the company’s headcount reduction plan have not been disclosed.

Genel produced an average 69,000 barrels per day in 2014, a 58 percent jump over 2013, and projects 2015 production to average 90,0000 to 100,000 barrels per day.

The company said its 2014 revenue will be on the lower end of its $500 million to $600 million guidance.

Prolonged low oil prices forced Genel to trim its 2015 revenue guidance to $350 million to $400 million from its initial guidance of $500 million to $600 million.