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Image courtesy of Helge Hansen/Statoil ASA.

Norway’s Statoil has reportedly offered all of its Norwegian employees a voluntary redundancy package, citing continued oil price weakness.

According to Energy Voice, a company review concluded that Statoil must reduce its headcount by between 1,100 to 1,500 full time positions.

The offer has only been extended to staff at the company’s Norwegian business.

Full time staff members will be able to apply for the severance package in January and final decisions on the who will win the voluntary redundancy package will be made by the end of February, Energy Voice said.

Employees who are granted the pay package will need to leave the copmany by December 31, 2016.

In a company message seen by the news agency, Statoil told employees that the decision was prompted by the “the situation facing our entire industry, with low oil prices, dropping margins, and unsustainable cost levels.”

Last month, Statoil announced plans to slim down its exploration program next year as it waits until 2017 to re-enter the Barents Sea following a disappointing 2014 drilling campaign in the play.

Statoil shelved its 2015 plans for the Barents Sea in January, citing high drilling costs and low oil prices.

The state-owned company will also exit the U.S. Arctic because it not longer considers its Chukchi Sea leases “competitive” within its global portfolio.

Statoil will exit 16 operated leases and its stake in 50 leases operated by ConocoPhillips, all located in the Chukchi Sea, along with closing its office in Anchorage, Alaska.

The leases were awarded in 2008 and expire in 2020.