Image courtesy of Nexen Energy/Flickr.

Calgary-based Nexen Energy confirmed Tuesday that it cut 120 jobs as the company contends with low oil prices.

A company spokesman told the Canadian Press that Nexen “made the difficult decision to reduce its workforce because of the current economic situation.”

The company has not disclosed further details about the cuts.

The headcount reduction follows 340 North American staff cuts and 60 layoffs in the U.K. North Sea last March that CEO Fang Zhi said were in “response to the recent industry downturn.”

The Canadian Association of Petroleum Producers estimates that Canadian energy firms have cut about 40,000 direct jobs since 2015,the Canadian Press added.

China’s CNOOC, Nexen’s  parent company, set its net production target for 2016 to between 470 to 485 million barrels of oil equivalent, down from its estimated 2015 net production of 495 million barrels of oil equivalent.

CNOOC expects its total 2016 capital expenditure budget to come in at about $9.18 billion (RMB60.0 billion), with exploration activities accounting for 19 percent of the spend, development costs accounting for 64 percent of the budget and production accounting for 13 percent of the spend.

CNOOC added that four new projects are expected to come onstream this year and nearly 20 more projects will be under construction.


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