Im in the planning / finance function and have seen abu g&a reducing significantly in 2022 and 23. Any reason why g&a would reduce so drastically year on year?
Only thing coming to mind is probably more cuts
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XOM and Shell (50% of the Gorgon venture) is pressing for bigger opex cuts. But they funded the compression project.
With a new $4B influx in Chevron bucks I suspect ABU has no worries.
Of all the years dealing with ABU folks who think they are way too important, too smart and better than everyone else, it's time to boot them out.
Agreed that ABU is in harvest mode. Completely matches MW's mantra of 'maximize revenue, minimize costs' of the last six years. No need for exploration, all the big stuff has been found (nothing meaningful has been found for the last 15 years now). Perth will very closely mimic how Midland (and maybe Calgary) have evolved over the years, switch to low-risk production managed by engineers. Expect virtually no expats going there, except for the few anointed ones who will 'monitor' the engineers for a couple years (mostly from the beaches), then get 'promoted' to Staff positions in San Ramon or Houston.
Any news whether exploration will be hit? It's a little concerning given our headcount numbers are quite high compared to other functions.
There was always a plan to reduce headcount over the years. Question is whether they will stick to the plan or let numbers drift up again. For some reason management is incapable of keeping a lid on staff numbers short of a structured layoff process.
Sigh. Here we go again, I have heard some murmurs in FE and have seen managers having 'staffing' meetings.
Partners will never recover from the cost blowouts nor ongoing plant breakdowns. Even if they supported more spending locally, their HQ management would have kittens at the suggestion of offering discretionary dollars to Chevron. Exploration has been a shambles for a decade. Time to shut er down mate. In order to meet Jan 1 cut level, need action by Sept or so.
My guess is no one including cvx jv partners has appetite to spend on exploration - so cuts seem likely there. Good luck to everyone if it does happen...
The ABU functions in a continual roundabout ....Perth is a bo-m or bust city. All those who got the boot found employment. They would never offer EOI again as they would be flooded. Exception being the HSE function, they would find work but on much lower rates as there's about 500 of them to be dispersed
ABU is in harvest mode now. No more growth potential. Feed the five trains at the lowest possible cost. Slash opex.
ABU has already had three culls to one in Houston. The first was wind down from the bo-m, the second pull back from added trains, the third mirrored the corporate retrenchment … what’s left to cut? Stop all exploration? I thought our reserves were already tanking. What’s the plan? Cash up to buy road ki-l?
G&A is mostly people (salaries, benefits, travel, parking, offices, laptops, etc), so if it is cut then people are cut. Maybe it assumes the NW Shelf sale?
Because lower-carbon virtual signaling pays higher dividends?
MH has some neat ties with McKinsey, something brewing perhaps. Great way to boost morale