(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. [O/R]
Below are plans announced by top 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.
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) aims to reduce its 2020 capital budget by around 30% to $250 million while keeping production flat.
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.
Reporting by Ron Bousso and Sonali Paul; editing by Jason Neely