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Chevron will give pink slips to about 25 employees from its Cook Inlet operations, the company announced Wednesday.

The layoffs will come from the workforce on Chevron's oil platforms. Chevron currently has 200 field employees working on Cook Inlet platforms.

Chevron spokeswoman Roxanne Sinz cited a number of factors leading to the decision to lay off employees.

"We have had some external things that have happened -- volcano activity, a partner go bankrupt and (oil) price volatility," Sinz said.

Mount Redoubt's eruption in March -- and the subsequent volcanic lahars and mudflows down the Drift River Valley -- prompted Chevron to shut down the Drift River Oil Terminal. Chevron shut down Cook Inlet oil production on April 4. Operations were restarted in August.

Chevron's platform operations produced an average of 2,222 barrels of oil per day in August, 5,371 barrels per day in September and 5,758 barrels per day in October.

Prior to Mount Redoubt's eruption, Chevron was producing about 7,500 barrels per day from eight Cook Inlet platforms, Sinz said.

Due to volatile prices for crude oil, Chevron entered 2009 with plans to defer capital spending for oil work this year. Alaska North Slope Crude was trading at $40.74 per barrel on Jan. 2, and closed at $78.40 Tuesday.

Pacific Energy Resources, which had an interest in fields operated by Chevron, filed for bankruptcy last March.

Sinz said the layoffs, which are effective Nov. 16, affect only Chevron employees. A number of contractors had been let go over the summer while oil production had been halted, Sinz said.

Sinz said that while oil production has declined, Chevron's natural gas production is "doing fine."

"It's going to be business as usual for our gas business, but our oil production is not doing too well out there," Sinz said.

Sinz said Chevron will do what it can to assist laid-off employees in finding a new job.

Will Morrow can be reached at will.morrow@peninsulaclarion.com.