• Technip’s workforce will be cut by 6,000
  • Restructuring plan will involve a one-off charge of $713m
  • It targets savings of $768m to be delivered in 2016 and savings of $143m in 2017

French contractor Technip has launched a restructuring plan, targeting savings of €830m ($914m) over 2016 and 2017 amid low oil prices.

“The sharp fall in oil prices has had a substantial impact on clients’ behavior,” the company said in a statement. “New projects continue to be deferred as clients assess their investment priorities in a durably changed oil price environment.”

The restructuring will involve a one-off charge of €650m and will reduce the company’s global workforce by about 6,000, according to the statement.

Technip’s restructuring plan targets savings of €700m to be delivered in 2016 and savings of €130m in 2017.

The firm says it is looking to reduce its presence in some markets, including countries in Europe, Asia and Latin America.

It did not give details on how its plans would affect operations in the Middle East and North Africa (Mena) region. Technip is currently involved in projects worth a total of $96.8bn in the pre-execution phase in the region, according to regional projects tracker MEED Projects.

Technip is also working on 245 schemes in the region that are under execution, worth a total of $247.7bn.

About 80 per cent of its work in the Mena region is made up of oil and gas projects.

Stay informed with the latest in the Middle East
Download the MEED app today, available on Apple and Android devices