Norway's EMGS Cuts Staff, Capex Further

Norwegian seismic oil and gas surveyor EMGS will cut its global headcount, including consultants, by 20 percent and reduce its vessel capacity as energy firms hold back on spending after oil prices nearly halved in one year, it said on Tuesday.

The measures, which also include cutting capital spending by 50 percent this year compared to the guidance given in the fourth quarter report, will reduce costs by an annual $35 million compared to 2014, it said.

"The company initiated cost reduction measures in the beginning of the first quarter (and) these measures have proven successful," the firm said.

"However, due to further delays in contract negotiations and lower than expected demand for EM data, EMGS Management has decided to implement an additional cost reduction programme," it added. "The key elements of the program will be effective from the beginning of the third quarter 2015."

(Reporting by Balazs Koranyi)