Italy’s oil major Eni said Wednesday it has concluded a revision of planned activities and will slash its 2020 capex by 25%, with deeper reductions the following year, Kallanish Energy reports.
The 2020-2021 business plan revision includes a reduction of around €2 ($2.17) billion in total capital spending, as well as a roughly €400 ($434) million cut on operating expenditure.
In 2021, Eni expects a capex reduction of around €2.5-3 billion ($2.7-3.2 billion), or 30-35% less than previously planned.
“The projects involved are related mainly to upstream activities, particularly production optimization and new projects developments scheduled to start in the short term,” the firm said in a statement.
These activities will restart as soon as market conditions are appropriate, with related production to be recovered accordingly, Eni said, without disclosing specific details.
“As a result of these measures and the current depressed scenario, production in 2020 is expected between 1.8 and 1.84 million barrels of oil equivalent per day, and it will remain unchanged in the following year,” it added.
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