BAKU, Azerbaijan, April 1
By Leman Zeynalova - Trend:
BP intends to reduce its organic capital spend in 2020, Trend reports citing the company.
“We now expect 2020 organic capital spend to be around $12 billion, around 25 percent below our prior full-year guidance,” said the company.
In Upstream, this includes a reduction of around $1.0 billion in spend on short-cycle onshore activity, including in BPX Energy, as well as deferral of certain exploration and appraisal activity and optimisation of the company’s major project spend.
“In Downstream, we expect a reduction in spend of around $1.0 billion, which includes reduced spending across our fuels marketing, refining and petrochemicals businesses,” said BP.
At the same time, the company is in action to protect its financial health.
“This may be the most brutal environment for oil and gas businesses in decades, but I am confident that we will come through it – we know what to do and we have done so before. And we also entered this environment in great shape with good operating momentum and financial discipline, strong liquidity and extensive optionality in our portfolio. We remain committed to growing sustainable free cash flow and distributions to our shareholders over the long term,” said the company.
“We are now acting quickly and decisively to further strengthen our financial frame in response to the currently volatile and extremely challenging market conditions. We will continue to review these actions, and any further actions that may be appropriate, in response to changes in prevailing market conditions.”
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