Columbus Energy Resources PLC (LON:CERP) has updated on its interests in Spain, where the operations are now being closed down due to the expiry of the company’s concession.
Dismantling operations are now complete, and the concession will be formally closed shortly.
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The company said that it intends to retender for the asset, with the new process anticipated in the second or third quarter although it noted that the timeline for that process to completion is still uncertain.
Additionally, the company said that, in regards to its Spanish workforce, it will need to start a collective dismissal procedure commencing from February 23. It intends to retain a sufficient number of employees to enable the retendering process and to keep the Ayoluengo field on “care and maintenance” until a new concession is awarded.
Job losses
“We have taken a very difficult decision, affecting our remaining employees in Spain,” said Leo Koot, Columbus Energy chairman.
“The decision to commence the collective dismissal procedure was taken because the company has incurred significant costs in Spain due to the government's decision not to renew the La Lora concession, exacerbated by the lengthy period between that decision and the (yet to be completed) closure of the concession.
“Given the time we expect it will take to complete the tendering process for a new concession, it is unsustainable for the company to continue to incur the current costs of suspended operations.”