Photo by: Duane Daws
Embattled national oil company (NOCs) PetroSA is offering its employees voluntary severance packages (VSPs) as it moves to further cut costs.
This was aimed at reducing the NOCs operational costs, improving efficiencies and sustaining the business, amid the depressed oil price and feedstock challenges at its gas-to-liquids (GTL) refinery in Mossel Bay.
The company, which incurred a R14.9-billion loss in the 2014/15 financial year, was in consultation with various structures and had opened applications for VSPs.
“The move to reduce the headcount is strictly on a voluntary basis. We realise that we cannot achieve the desired cost-saving targets without having to look at our operational costs.
“We will strive to ensure that the VSPs we have put on the table for our employees to consider, will help us realise our goal without compromising the need to retain critical skills and maintain a sustainable business,” acting group CEO Mapula Modipa said.
PetroSA further reported that it would continue to review its cost structures. It had already embarked on a number of initiatives to streamline the company and improve efficiencies and business sustainability. This included its BillionPlus cost-containment drive, initiated in August 2014, which was aimed at saving R1.25-billion in recurring costs.
At year-end, savings of R1.1-billion were achieved through nonheadcount initiatives such as the nonrenewal of certain contracts and the scaling down on the filling of nonessential vacancies.