Uzbekneftegaz to Fire 12,000 Staff
Uzbekistan's President Shavkat Mirziyoyev has decided to fire 12,000 Uzbekneftegaz employees, or about 10% of its staff, as part of a major restructuring, the website of the head of state has reported. The overhaul will include the privatisation of certain business units.
As part of a radical overhaul "for the long-term and stable development of the industry.... in line with modern corporate governance methods", the president said one of the most painful decisions will be the dismissal of 12,000 employees of Uzbekneftegaz's structural units and subsidiaries.
Mirziyoyev instructed the ministry of employment and labor relations to assist in the placement of those dismissed. The website account added that, after the reorganization, the five largest businesses within Uzbekneftegaz will receive an updated list of priority tasks.
Uzneftegazdobycha will develop deposits and produce oil, gas and gas condensate, while Uznefteprodukt will process hydrocarbons and refine oil products, Uzburneftegaz will drill exploration and production wells, and Uzneftegazmash will manufacture oil, gas and chemical process equipment. Finally, Uztransgaz will be responsible for supplying the country's businesses and homes with natural gas and LNG.
Curbing waste, privatising non-core assets
Mirziyoyev instructed the company to improve its gas transport and distribution pipeline networks, keep strict accounts of the how much gas is sold, and take measures to reduce losses and waste of gas, and prevent and suppress theft and illegal connections to gas networks. He also approved a decision to create a limited liability subsidiary of Uzbekneftegaz, called Neftgazexport, that will export Uzbek oil, gas and refined oil products.
In addition, some of the enterprises to be withdrawn from Uzbekneftegaz's structure are to be put up for sale by shares to local and foreign investors.
The state-owned firm dominates production in the central Asian republic. According to the recent BP Statistical Review of World Energy, Uzbekistan produced 55,000 b/d oil and 62.8bn m3/yr sales gas in 2016 - thus ranked 14th largest gas-producing nation in the world.
Uzbekneftegaz's annual report said that, at January 1 2016, it had over 128,000 employees, meaning the planned reduction is 9%-10% of the workforce.
When Shell took over BG in 2016, the Anglo-Dutch supermajor announced the axing of 10,300 posts, or 10% of its combined staff, while oil service companies have conducted similar sized retrenchments too. Former Soviet state oil and gas businesses until lately though had not.
Azerbaijan Desk