Sonatrach CEO Toufik Hakkar announced that the company will set a new cost containment strategy in place in light of lower oil prices and tighter margins. As a result, Sonatrach created the COST Project Directorate (Cost Optimization System Tracking), which will aim to deploy cost optimization initiatives across all of its activities.
The COST project management has as a main objective the implementation of a sustainable cost reduction program and the realization of concrete actions to optimize expenses to ensure sustainability and profitability, according to Project Director, Lazhar Mahboubi.
These missions are based on two goals. The first consists in uniting all the teams of HS Activities and Structures towards the review and optimization of their operating budgets. The second consists of working on the corporate culture and change management in order to involve and instill a cost optimization culture among all Sonatrach staff.
“The COST project management is fully in line with the company’s continuous improvement objectives. It is a decisive lever for ensuring the efficiency of our activities and also ensuring collaborative dynamics within SONATRACH aiming at a sustainable improvement of our performances,” Mahboubi said.
Source: Petroleum Africa