El Paso Corp. is reorganizing its exploration and production business, a move that will cut about 40 positions.
In memos sent to employees today the company said it will organize the business into three geographic regions: Western, Central and Gulf Coast. The Gulf Coast includes offshore Gulf of Mexico work, South Texas and Southern Louisiana fields. Several divisions that used to be spread throughout each geographic region — drilling, production, supply chain management, and the environmental health and safety divisions — will become centralized functions for the company.
“Given our lower activity levels and reduced capital program, this was not only the right time to address our organizational structure they also afford us the time and resources to make it seamless and successful,” said Brent Smolik, president of E&P at El Paso.
The plan should not any impact on the company’s massive natural gas pipeline business.
The E&P business accounted for about 51 percent of El Paso’s 2008 revenue, or $2.7 billion, with the rest coming from the pipeline business. The company has about 5,000 employees, including 1,900 in Houston.