Hartshead Resources NL has cut its workforce as it begins infrastructure funding talks that could “significantly” reduce its upfront phase I spending on the Anning-Somerville gas development.
REGRETTABLE
The company, already in negotiations for financing, said it could move initial capital expenditure into operating expenditure “via a tariff payable in respect of third party infrastructure investment”.
Hartshead retains its 2022 budget for P2607, partnered with RockRose Energy, but it added that the future remained “unclear” following proposals to increase the Energy Profits Levy.
A company cost reduction initiative for the current and next phase on the southern North Sea licence and related contracts led to a “material” cut in head count and in monthly costs to the joint venture and to Hartshead directly.
Chief executive Chris Lewis added: “While it is regrettable that we have had to let so many from the project team go, we recognise the importance of preserving our cash position as much as possible until we have the clarity on policy to enable the project to once again move forward.”