Photo by: Duane Daws
To enhance operational efficiencies, in the midst of challenging market conditions, and to ensure its survival and sustainability, South Africa’s national oil company (NOC) PetroSA will reorganise its business.
The NOC said on Wednesday that, as a result of ongoing feedstock challenges at its Mossel Bay Refinery, it could possibly retrench employees.
PetroSA had invited labour to engage with it in a “meaningful joint consensus-seeking process”, where measures to avoid, reduce and mitigate the adverse impacts of a possible headcount reduction would be explored.
The feedstock challenges had seen the company operate at subcommercial levels and PetroSA had also not been immune to the impact of external factors, such as the slump in the oil price and the resultant declining revenues.
The NOC was nearing the completion of a cost optimisation project to realise R1-billion in recurring operational cost savings.