SHARE
Image courtesy of Chevron.

Chevron has reportedly cut 1,200 jobs at its Gorgon Lake LNG project in Western Australia as construction on the massive project wraps up.

An official with the Electrical Trades Union told the Australian Business Review that about 530 electrical workers at the project were laid off last Thursday and Friday.

Those cuts were in addition to about 700 more layoffs that occurred over the last two weeks at Barrow Island, where the Gorgon gas plant is located, the paper added.

Boilermakers, pipe fitters, welders and trades assistants were among the positions that were cut.

The redundancies have slashed the total headcount at Barrow Island down to 7,000, or by about 15 percent, over the last several weeks.

“As the Gorgon project moves closer to first gas and work scopes are completed, contractor workforces continue to demobilize from Barrow Island,” a Chevron spokeswoman told the Australian Business Review.

Chevron is developing the Gorgon and Jansz-Io gas fields, located within the Greater Gorgon area, between 80 and 136 miles off the northwest coast of Western Australia.

The project includes the construction of a 15.6 million tonne per annum liquefied natural gas plant on Barrow Island and a domestic gas plant with the capacity to supply 300 terajoules of gas per day to Western Australia.

The company currently expects to begin loading the first LNG cargo from the project is early 2016.

Chevron has not commented on whether the cuts are part of a broader headcount reduction plan announced in November.

Chairman and CEO John Watson said last month that Chevron expects to reduce its headcount by 6,000 to 7,000 positions over the next two years as the company reigns in spending to deal with low crude prices.

“We expect further reductions in spending for 2017 and 2018, to the $20 to $24 billion range, depending on business conditions at the time. With the lower investment, we anticipate reducing our employee workforce by 6–7,000,” Watson said in November.

The Gorgon Project is a joint venture between the Australian subsidiaries of Chevron with a 47.3 percent stake and ExxonMobil with a 25 percent stake.

Shell holds a 25 percent stake, Osaka Gas holds a 1.25 percent stake, Tokyo Gas holds a 1 percent stake and Chubu Electric Power holds a 0.417 percent stake.