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BP to reduce upstream jobs by 3% this year

London-based oil and gas major BP PLC will trim its global upstream workforce by 540 employees, or 3%, by the end of this year in an effort to slash costs and streamline the unit, according to the company.

"BP has today informed staff of planned organizational changes in its Upstream business regions worldwide, aimed at further improving the efficiency and competitiveness of its organization. This is part of the ongoing process across BP to modernize its business to adopt more efficient ways of working and also to further simplify its organization and increase efficiency following $50 billion worth of divestments over recent years," the company said in a May 22 statement.

Globally, the company employs about 18,000 upstream workers.

Rising production, lower operating costs and higher oil prices worked to more than double the company's 2017 profit to $6.2 billion and allowed BP to buy back shares following an extended period of low oil prices and the 2010 oil spill at Deepwater Horizon in the Gulf of Mexico. BP was the first of its peers to end its scrip program and restart a share buyback program.

The company's first-quarter results detailed strong production figures. Oil and natural gas production during the first three months of 2018 was up 6% to 3.7 million barrels of oil equivalent per day, its highest level since the 2010 spill, due in part to the ramp-up of seven major projects in 2017.

BP said it expects second-quarter reported production to be lower than the first quarter, reflecting the expiration of the Abu Dhabi offshore concession and seasonal turnaround and maintenance activities.