Oil-equivalent production was 3.7 million bpd, up 1% from 2Q20. Production continued to reflect COVID-19 demand impacts, including economic and government mandated curtailments. Excluding entitlement effects, divestments, and government mandates, liquids production increased 2%, while natural gas volumes decreased 1 percent.
“We remain confident in our long-term strategy and the fundamentals of our business, and are taking the necessary actions to preserve value while protecting the balance sheet and dividend,” said Darren W. Woods, chairman and CEO. “We are on pace to achieve our 2020 cost-reduction targets and are progressing additional savings next year as we manage through this unprecedented down cycle.”
The company’s preliminary 2021 capital programme, which will be reviewed by the board of directors in the fourth quarter, is expected to be in the range of US$16 billion to US$19 billion, a reduction from the 2020 target of US$23 billion announced in April. The company expects to identify further structural efficiencies as it continues previously announced country-by-country reviews.
In the company's upstream segment average third quarter realisations for crude oil improved significantly, as market prices increased following the second quarter's challenging environment. Natural gas realisations declined, primarily due to a lag in crude-linked LNG contract pricing.
Improved market conditions enabled full recovery of production impacted by economic curtailments. Government mandated curtailments negatively impacted third quarter results and are anticipated to continue in the fourth quarter.
Read the latest issue of the magazine in full for free: Oilfield Technology's November/December 2020 issue
The November/December issue of Oilfield Technology begins by reviewing the state of the North Sea before moving on to cover a range of topics, including Drilling Technologies, Deepwater Operations, Flow Control.
Contributors come from Varel Energy Solutions, Gyrodata, Clariant Oil Services, Drillmec and many more.
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