(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):
BPBP (BP.L) said it planned to reduce capital and operational spending. BP’s capital spending last year reached around $15 billion.
Chevron Corp (CVX.N) 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.
Equinor (EQNR.OL) is reviewing its capital and exploration spending plans, it said.
The second tranche of its share buyback programme - worth $675 million when including the Norwegian state’s share and scheduled to run from May 18 to Oct. 28 - is still on the table, pending approval by the annual shareholders’ meeting, a company spokesman said.
Exxon Mobil (XOM.N) said it would make “significant” cuts to spending, without giving any details. The company earlier budgeted $30-33 billion for projects this year.
Kurdistan-focused producer Gulf Keystone has also suspended some of its drilling activities in the northern Iraqi region.
Kosmos Energy (KOS.N) 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.
Papua New Guinea-focussed Oil Search Ltd (OSH.AX) has slashed its 2020 investment and capital spending by 38% and 44%, respectively, to cope with crashing oil prices.
Premier Oil (PMO.L) 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 Ltd (STO.AX), 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 Arabia’s national oil company Aramco 2222.SE said it planned to cut capital spending for 2020 to between $25 billion and $30 billion, compared with $32.8 billion in 2019.
Tullow (TLW.L) 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, Sonali Paul, Shadia Nasralla; editing by Jason Neely