Bowleven Oil and Gas sack 13 staff and reduce Edinburgh head office to ‘holding company’ status

The victorious winners in the bitter boardroom battle at Bowleven Oil and Gas have sacked 13 staff from its Edinburgh head office and put the company on a reduced holding company-only status.

The new board, led by newly-appointed chief executive Eli Chahin, also confirmed that it does not expect to pursue any new exploration activity at the current time.

Chahin said: “Bowleven will continue to maintain an appropriate presence in Cameroon to preserve and enhance value from our Etinde and Bomono assets.

“We intend to retain technical capacity and institutional knowledge as required so as to enable Bowleven to meet its contractual obligations under the terms of the joint venture and to pursue the most efficient route to value maximisation in relation to both Etinde and Bomono, in due course.

“Once the development options as to gas monetisation of both the Etinde and Bomono assets have been determined and costed, the Board anticipates being in a position to determine the cash requirements of the business and whether there are surplus assets that can be returned to shareholders.”

These changes and job cuts will almost halve Bowleven’s corporate services and management costs to $350,000 per month.

This compares well with the $600,000 per month under previous (and recently sacked) chief executive Kevin Hart – a former Cairn Energy high-flyer who was paid £900,000 a year when the company reported a £129.2 million loss.

 

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