Offshore staff
STAVANGER, Norway – Equinor has drawn up a $3-billion action plan to strengthen its financial resilience in the current strained market conditions.
The company claimed it can be organic cash flow neutral before capital distribution in 2020 with an average oil price of around $25/bbl over the remainder of the year.
Main elements are:
- Reducing planned capex for 2020 from $10-11 billion by 20% to around $8.5 billion.
- Reduced exploration target of around $1 billion compared with $1.4 billion previously.
- Cutting opex this year by around $700 million compared to original estimates.
These cuts, the company said, would be driven by a strict process of prioritization where flexibility of cost and schedule for sanctioned and non-sanctioned projects have been reviewed.
03/25/2020
