the Norwegian oil company Equinor reduce investment, exploration activity and operating expenses within the plan cost of $ 3 billion to bolster the financial stability amid coronavirus and low oil prices.
Equinor stop drilling on land in the U.S., leaving production at a later period, which will significantly reduce investment in 2020, it said in a statement.
These cost reductions are in addition to already announced the suspension of share buyback “until further notice”.
“currently, we are taking steps to further enhance our sustainability in this situation with the spread of coronavirus and low commodity prices,” said CEO Eldar Sætre.
“given the measures that are now being implemented, Equinor can reach the neutral organic cash flow to capital allocation in 2020 at an average oil price of around 25 dollars per barrel during the remaining part of the year”, — stated in the message of the company.
oil Prices fell more than 50% this year. Now Brent is trading around $ 28 per barrel.
the Plan Equinor provides a reduction in organic capital investment to 2020 from 10-11 billion dollars to 8.5 billion dollars, i.e. approximately 20%.
the Costs of exploration will be reduced to $ 1 billion with the planned 1.4 billion. Operating expenses will decrease by approximately $ 700 million compared to original estimates.