Capricorn’s new board announces its plans
Capricorn Energy, the Edinburgh-based oil and gas explorer, formerly known as Cairn Energy, is expected to confirm cuts to its UK workforce this week as it focuses its activities on Egypt.
The results of a strategic review by the new board will be unveiled on Thursday and follow a year of turmoil that saw two failed takeover deals by Tullow Oil and NewMed Energy and the firing of the former directors.
Capricorn shareholders voted in favor of a revamped business model that aims to maximize the value of the North African asset base and reduce costs by largely phasing out exploration activities.
Launched in its old guise in 1996 by Scottish rugby international Bill Gammell, the company stated last month that it will need a smaller workforce in the UK.
Thursday’s announcement will provide “quantitative and qualitative details on costs” as part of the broader strategic review update.
It has been involved in a redundancy consultation process involving 238 employees worldwide, which will result in an organization of less than 40 people. It is likely to cut 120 UK positions and the Lothian Road headquarters could be closed and moved to smaller offices.
In a boardroom coup, Craig van der Laan became chairman and Chris Cox, who previously ran Centrica’s Spirit Energy, was named interim chief executive.