Chevron Thailand Exploration and Production Ltd has announced plans to lay off 800 workers in Thailand as low oil prices cut into the company's revenue.
The 800 employees constitute more than 20% of Chevron Thailand's total workforce of 3,900 people, according to a company statement.
"In response to the prolonged low oil price environment and lower gas demand, Chevron Thailand Exploration and Production Ltd has conducted a review of our operating model and organisational structure to ensure we have a sustainable business over the long term," the company said.
Before the latest announcement, Chevron Thailand had reduced its number of expatriate employees by over 50% and dismissed nearly all of its expatriate contractors.
The layoffs are part of an ongoing reorganisation plan that is expected to be completed by Aug 1, the company said.
California-based Chevron took over Unocal in 2005 and began exploring and producing gas from blocks in the Gulf of Thailand.
The local arm's major petroleum and gas resource is the Erawan gas field, which started producing gas in 1981.
The concession for the Erawan gas field is set to expire in 2022. The Department of Mineral Fuels has begun evaluating the blocks, a process which must be completed before the expiry of the concession.
The evaluation is being conducted by a third party out of fairness to new investors who may be interested in bidding on the blocks in the upcoming round.
The new concession for the Erawan block will be awarded under a new system of production-sharing contracts, replacing the existing concession fee system.
The evaluation will cover the proven and probable oil and gas reserves of the blocks, as well as their asset value.
The Erawan gas field is estimated to have capacity of 885 million standard cubic feet per day, accounting for 20% of the country's gas production.