Imperial Oil Ltd., Toronto, will trim planned 1993 spending by about $200 million (Canadian) in a continuing cost cutting program.
imperial, the Canadian unit of Exxon Corp., will have a capital budget of about $600 million in 1993, but much of that will be spent on maintenance programs and environmental requirements. Imperial has reduced spending by $378 million this year, including substantial staff reductions.
The company will have cut staff levels by the end of 1992 to about 10,000 from 15,000 in 1990. Chairman Robert Peterson said it is not unrealistic that Imperial could operate with 8,500 employees, although that is not a firm target for staffing.
Peterson said plans to consolidate exploration operations with Exxon's operations in Houston have not been explored in detail but are not being ruled out as a possibility.
In other strategic moves, Imperial will:
- Reduce retail service station outlets by 250 this year and an additional 400 in the next several years. The company has a target of 3,400 stations by the end of 1995.
- Make a 50% reduction in gasoline exports of 35,000 b/d to the U.S. by yearend and an equal reduction in refinery throughput.
- Convert its 44,200 b/d loco, B.C., refinery to a storage terminal within 25 years because the plant no longer is competitive. Imperial's 118,800 b/d Sarnia refinery and 112,100 b/d Nanti-coke refinery, both in Ontario, will operate at reduced volumes.
Peterson said he expects to see a reversal in the present west-east flow of a crude oil pipeline between Sarnia and Montreal. The line was built to move western Canadian crude to the Quebec market. Peterson expects imported crude to be a better buy in the future.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
