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UPDATE 2-Shell to cut 5 to 10 pct of jobs at oil sands project

Fri, 09th Jan 2015 21:23

(Adds update from other oil sands mining companies)

By Nia Williams

CALGARY, Alberta, Jan 9 (Reuters) - Royal Dutch Shell Plc will cut between 5 and 10 percent of the just over3,000 jobs at its Albian Sands mining project in northernAlberta, a company spokesman said on Friday, although herefrained from connecting the move to plunging oil prices.

Spokesman Cameron Yost said the actual number of jobreductions at the Canadian operation had not yet been finalized,adding it would be "well below" 10 percent.

The cuts were announced to Shell employees on Thursday.

Yost said those affected will be considered for otherpositions within Shell's operations.

"It's not layoffs in the traditional sense of the word,"Yost said. "It's adjustments to the organizational structure."

Albian Sands is the mining portion of Shell's Athabasca OilSands project near Fort McMurray, Alberta, which also includesthe 255,000 barrel-per day Scotford upgrader.

Last February, Shell halted work on its proposed 200,000 bpdPierre River oil sands mine in Alberta, saying it wasre-evaluating the timing of various asset developments.

Asked whether the reductions were related to the halving ofglobal oil prices in the past six months, Yost said: "Even ifoil price had remained stable we would still be looking at theseareas of our business."

Global oil prices sank to their lowest level since April2009 on Friday on persistent worry over a global supply glut.

Other companies operating oil sands mines in Alberta areImperial Oil Ltd, Suncor Energy Inc, CanadianNatural Resources Ltd and Canadian Oil Sands Ltd, which is the largest-interest owner in the Syncrudeproject.

All four said they have not reduced employee numbers attheir projects. (Editing by Peter Galloway. Editing by Andre Grenon)

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