Phillips 66 joint venture cutting 300 jobs

Phillips 66’s DCP Midstream joint venture is cutting 20 jobs in Houston this week and 80 more throughout the rest of Texas as the company reshapes itself during the oil and gas downturn.

Denver-based DCP Midstream is eliminating 300 positions nationwide, including the 100 cuts in Texas. The pipeline and gas processing joint venture between Phillips 66 and Spectra Energy has served as a financial burden for both Houston-based companies the last couple of years. DCP began an overall downsizing about 18 months ago.

After the 300 cuts, DCP will still employ about 2,900 overall, including 280 in Houston and nearly 1,000 more nearer the Texas oil fields, said DCP spokeswoman Roz Elliott. She emphasized that some of the cuts were made by not refilling vacancies.

“We continue to transform the company,” she said. “We got out in front over 18 months ago.”

In a prepared statement, DCP Chairman and CEO Wouter van Kempen said the joint venture reduced its 2016 capital budget down to $250 million. In comparison, Phillips 66’s contribution alone to DCP’s capital budget last year was $550 million. Van Kempen noted DCP completed most of its capital construction program last year.

“This is a challenging environment that we are managing through and we continue to execute on our strategy to reset our break-even cost to ensure we are the most reliable, safe, low-cost midstream services provider sustainable in any environment,” van Kempen said in a prepared statement.