Devon Energy Corporation announced Thursday a plan to consolidate its U.S. operations to the company's corporate headquarters in Oklahoma City. As a result, the company will close its offices in Houston and transfer operational responsibilities for assets in South Texas, East Texas and Louisiana to Oklahoma City.
"Consolidating our U.S. operations will improve our ability to quickly shift the focus of our workforce between project areas as economic conditions dictate," said Dave Hager, Devon's executive vice president of exploration and production. "In addition, this move will improve the sharing of best practices and enhance overall operational efficiency."
The company expects to relocate a number of employees from Houston to Oklahoma City.
"Our employees in Houston have made enormous contributions toward Devon's growth over many years," said Devon Chief Executive Officer John Richels. "We appreciate the role each of them has played, and we look forward to welcoming many of them to continue their work from our headquarters in Oklahoma City."
The consolidation is expected to save the oil and gas company approximately $80 million a year in both general and administrative expenses and capitalized personnel costs.
"Dramatic changes within our industry have made it more important than ever to respond quickly to new opportunities and to place our talented people in the best position to overcome challenges," Richels said. "Oklahoma City continues to grow as a major hub of the nation's energy industry, and we believe our headquarters downtown provides us with an outstanding foundation for future growth."
The completion of this initiative is expected to be substantially complete by the end of the first-quarter 2013.