Capricorn Energy cuts to be confirmed in review
Capricorn’s new board will announce its plans
Capricorn Energy, the Edinburgh-based oil and gas explorer formerly known as Cairn Energy, is this week expected to confirm cuts to its UK workforce as it focuses its activities on Egypt.
The results of a strategic review by the new board will be unveiled on Thursday and follows a year of turmoil involving two failed takeover deals by Tullow Oil and NewMed Energy and the ousting of its former directors.
Capricorn shareholders voted in favour of a revamped business model that aims to maximise value from its North African asset base and cut costs by largely exiting the exploration business.
The company, which was launched in its former guise in 1996 by the Scotland rugby international Bill Gammell, stated last month that it will need a smaller workforce in the UK.
Thursday’s announcement will provide “quantitative and qualitative detail on costs” as part of the wider strategic review update.
It has been engaged in a a redundancy consultation process with 238 global employees which will result in an organisation of fewer than 40 people. It is likely to axe 120 UK roles and its headquarters in Lothian Road could be shut and relocated to smaller offices.
In a boardroom coup, Craig van der Laan became chair and Chris Cox, who previously ran Centrica’s Spirit Energy, was appointed interim chief executive.