Devon Energy Corp. is consolidating its operations in Oklahoma City and shutting down its offices in Houston.
“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.”
Devon intends to relocate employees who oversee operations in south Texas, east Texas and Louisiana from Houston to Oklahoma City by early next year.
The move is expected to save the company about $80 million a year in lower administrative expenses and personnel costs.
Devon estimates the reorganization will cost about $125 million, with most of those costs being incurred this year.
The Oklahoma City-based oil and natural gas company recently completed a new 50-story headquarters building downtown. It has room for the employees who had been in Houston, but company officials declined to say how many of Devon’s 500 Houston employees would move to Oklahoma City.