Independent producer Apache Corp. is closing its San Antonio, Texas, office and slashing 272 jobs as part of a corporate reorganization designed to cut costs, Kallanish Energy learns.
The Houston-based company confirmed Thursday it’s reducing its global workforce by up to 15%, roughly 500 total jobs, as part of a broader restructuring announced late in 2019.
The San Antonio office oversees its highly touted, but struggling Alpine High project in the Permian Basin. The closure follows the October resignation of Steven Keenan, the former senior vice president of Worldwide Exploration who was widely credited with the Alpine High discovery in 2016.
Alpine High has been hit by weak natural gas prices, which prompted the company to temporarily halt production in the third quarter, reduce drilling in the region, and said it would reassign capital to other areas if prices did not recover.
The job cuts include those eliminated through attrition, and at least some of the San Antonio jobs will transfer to Houston or other field offices, an Apache spokesman told the Houston Chronicle newspaper.
“Apache has already centralized key activities and seen positive results and is looking to take further steps in that direction,” Apache’s Phil West told the Chronicle.
Apache said the San Antonio closing and the 272 job cuts will be finalized in early March, according to a letter filed with the Texas Workforce Commission.
The closing of the San Antonio office is part of the reorganization plan to save $150 million annually. In addition, Apache plans to cut 2020 capital spending by up to 20% — a $250 million to $500 million chop.
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