Management at JO has told Saudi and Kuwaiti Nationals not to report for work after August 1. they can stay at home and collect their pay. It appears production will not be restarting anytime in the foreseeable future. Chevron will be completely gone by the time JO reopens.
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Well Said. Anonymous 122877. Very good explanation of a complex ongoing situation.
It appears the open leave for KGOC employees has been cancelled before it even began however I don't think that is any indication of progress being made in the discussions between Saudi and Kuwait
For those of you thinking you are on TheLayoff and reading about Project Alpha and the ROMs the situation in Kuwait and Saudi is really an independent issue where the layoffs began from the political feud between The Sabah's (ruling family of Kuwait) and Saudi King Abdullah, now King Salman, over the former neutral zone. Chevron got caught in the middle and because we represent Saudi but have a big Chevron office in Kuwait and another joint Kuwait national oil company/Saudi-Arabian Joint Operation office also in Kuwait. Basically Kuwait kicked us out physically but hasn't truly tried to nationalize the fields (undoubdedly fearing Saudi tanks rolling north to protect their 50% interest). It IS part of the ROM's in that Chevron has a whole lot of employees and contractors on near idle collecting paychecks in the Mid East business unit with no income from the Zone because the fields are shut in. Part of the main corporate decision is to decide a) the Partitioned Neutral Zone is a lost cause or at least will take decades to solve - hey it's in the Middle East - and just shut down the SBU to a scout and a secretary on local salary in Houston or b) It's a short term road bump that will soon be solved, let's keep a big team working on long-term projects and dreams in Houston until Emir let's us return in a few months.
Let's hope the corporate decision is that the political crisis will soon end and production can be quickly restored and there is a long term business to add reserves through exploration. Otherwise there will be another couple hundred geoscience, engineering, and project management positions added to the ROM redundant category. This , at least at one time, was one of the crown jewels of Chevron's future - to unlock billions of barrels of heavy crude with steam that are already under 30-year contract so at least there is some chance of b) prevailing - at least for now.
Saudi will be fine. Kuwait is scrambling to find 300 Kbpd thru KOC. The oil isn't going anywhere. Of course Kuwait no longer really needs to produce oil. They have the perfect combination of small population and hundreds of billions in foreign investment. Neither country need Wafra. It was more of a "good faith" relationship. Al Khorayef took it up the butt.
There is a lot of oil just sitting in the ground there but it looks like both sides are dug in for a long fights. Chevron employees and Contractors are the ones who will lose out. Kuwait and Saudi will be just fine
Yes it's too bad Al-Sabah didn't toe the party line. Such a waste.