March 17, 2020 / 9:58 AM / 24 days ago

FACTBOX-Global oil, gas producers slash spending after price rout

(Adds Tullow, Premier)

March 17 (Reuters) - Oil and gas companies around the world are planning to slash spending in the face of a plunge in oil prices caused by the spread of the coronavirus and a push by Saudi Arabia and Russia to flood the market with supply.

Below are plans announced by energy companies (in alphabetical order):

BP

BP said it planned to reduce capital and operational spending. BP’s capital spending last year reached around $15 billion.

CHEVRON CORP

Chevron Corp said it was looking at ways to trim spending that could lead to lower near-term oil production. The company, however, did not provide details. The oil major’s 2020 organic capex guidance was $20 billion.

North American oil and gas producers have slashed their capital spending by about 30% on average, according to data compiled by Reuters.

EXXON MOBIL

Exxon Mobil said it would make “significant” cuts to spending, without giving any details. The company earlier budgeted $30-33 billion for projects this year.

GULF KEYSTONE

Kurdistan-focused producer Gulf Keystone has also suspended some of its drilling activities in the northern Iraqi region.

KOSMOS ENERGY

Kosmos Energy suspended its dividend and said it was aiming to reduce 2020 capital spending by 30% with a view to becoming cash flow neutral at oil prices of $35 a barrel.

PREMIER OIL

Premier Oil said it had identified at least $100 million in potential savings on its 2020 capital spending plans. Premier expects to be broadly cash flow neutral in 2020, assuming a $100 million reduction in planned 2020 capex and $35 per barrel oil price for the rest of the year.

SANTOS

Santos Ltd, Australia’s No. 2 independent gas producer, said it is reviewing all its capital spending plans in light of the collapse in oil prices and would stop all new hiring.

SAUDI ARAMCO

Saudi Arabia’s national oil company Aramco said it planned to cut capital spending for 2020 to between $25 billion and $30 billion, compared with $32.8 billion in 2019.

TULLOW OIL

Tullow said it would cut its investment budget by about a third to $350 million this year and reduce its exploration spending, historically the group’s focus, by almost half to $75 million. It said the oil price fall may jeopardise a planned $1 billion in asset sales needed to refill its coffers, raising the risk the group’s lenders may become reluctant to approve loans essential to shoring up its future. (Reporting by Ron Bousso and Sonali Paul; editing by Jason Neely)

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