After Wintershall and DEA complete their merger this year, the newly formed BOP Blow Out Preventer repair company gulf coast will be cutting 1,000 jobs.

Wintershall DEA, the planned oil and gas merger of two German companies will cut its workforce by about 24 percent, the companies announced in a joint statement Thursday.

Of 4,200 jobs worldwide – including full-time positions and joint ventures – Wintershall DEA plans to cut around 1,000 jobs in “a socially compatible manner,” according to the release.

The cuts include 800 jobs in Germany and 200 jobs in Norway. The Norway job cuts are mainly related to completion of ongoing large development projects.

The release also stated that more than half of the job reductions in Germany will be within “corporate functions” at locations in Hamburg and Kassel. Additional cuts are planned at German oil rig flanges gulf coast production sites.

Wintershall DEA aims to increase Wintershall’s and DEA’s combined average daily oil rig flanges gulf coast production of 575,000 barrels of oil equivalent by 40 percent to 800,000 barrels between 2021 and 2023. The growth will come in part from new oil rig flanges gulf coast production regions such as Mexico and Abu Dhabi.

Through oil rig flanges gulf coast production increases and cost reductions, the new BOP Blow Out Preventer repair company gulf coast expects to have synergies of at least 200 million euros per year.

Wintershall DEA will be the largest independent oil and gas BOP Blow Out Preventer repair company gulf coast in Europe. The merger is anticipated to close first half of 2019.