Total to make cuts to spending in response to low oil prices

These include:

• Organic CAPEX cuts of more than US$3 billion, i.e. more than 20%, reducing 2020 net investments to less than US$15 billion. These savings are mainly in the form of short-cycle flexible CAPEX, which can be arbitrated contractually over a very short time period.
• US$800 million of savings in 2020 on operating costs compared to 2019, instead of the US$300 million previously announced.
• Suspension of the buyback programme – the company announced a US$2 billion buyback for 2020 in a US$60/bbl environment; it bought back US$550 million in the first two months

The company will announce its 1Q20 results on 30 April.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/23032020/total-to-make-cuts-to-spending-in-response-to-low-oil-prices/