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Business News

Oil and gas companies to slash spending, as oil price falls

Oil and gas companies around the world are set to slash spending, as oil prices continue to plunge because of the price war and the COVID-19 outbreak.

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Global crude oil prices

Oil and gas companies around the world are set to slash spending, as oil prices continue to plunge because of the price war between Russia and Saudi Arabia and the COVID-19 outbreak.

According to Reuters, Chevron Corporation revealed plans to trim spending that could lead to lower near-term oil production, although the company did not provide details. The oil major’s 2020 organic Capex guidance was $20 billion.

Oil workers will be paid N75 billion worth of salaries in 2020 , Oil production drops, as Nigeria complies with OPEC+ output cuts  

North American oil and gas producers have slashed their capital spending by about 30% on average, while Exxon Mobil has said it would make “significant” cuts to spending this year, including the $30-33 billion budgeted for projects.

Kosmos Energy has suspended paying its dividend and said it was aiming to reduce 2020 capital spending by 30% with a view to becoming cash flow neutral at oil prices of $35 a barrel, while Gulf Keystone suspended some of its drilling activities in the northern Iraqi region due to recent developments.

[READ MORE: Oil price slumps further to $30, as Nigeria grapples with high production cost)

BPBP said it planned to reduce capital and operational spending from about $15 billion in 2019, although no figure was given.

Equinor is reviewing its capital and exploration spending plans, while its second tranche of share buyback program – worth $675 million scheduled to run from May 18 to Oct. 28 – is pending approval by the annual shareholders’ meeting, a company spokesman said.

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In New Guinea, Oil Search Ltd has slashed its 2020 investment and capital spending by 38% and 44%, respectively, to cope with crashing oil prices.

Premier Oil said it had identified at least $100 million which could be saved in its 2020 capital spending plans. It expects a neutral cash flow once the deduction is made, and assumes a stable $35 per barrel oil price for the rest of the year.

Australia’s No. 2 independent gas producer, Santos Ltd said it was reviewing all its capital spending plans in light of the collapse in oil prices and would stop all new hiring.

Saudi Arabia’s national oil company, Aramco will cut capital spending for 2020 to between $25 billion and $30 billion, as against $32.8 billion in 2019.

[READ ALSO: Oil price crash, Coronavirus: The trouble that lies ahead for Nigeria)

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Tullow would cut its investment budget by about a third to $350 million this year and reduce its exploration spending by almost half to $75 million. It said the oil price fall could jeopardize a planned $1 billion in asset sales needed to refill its coffers, raising the risk the group’s lenders may become reluctant to approve loans essential to shoring up its future.

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Although none of the companies has mentioned a lay-off, there are indications that there would be no new hiring for the rest of 2020.

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Ruth Okwumbu has a MSc. and BSc. in Mass Communication from the University of Nigeria, Nsukka, and Delta state university respectively. Prior to her role as analyst at Nairametrics, she had a progressive six year writing career.As a Business Analyst with Narametrics, she focuses on profiles of top business executives, founders, startups and the drama surrounding their successes and challenges. You may contact her via [email protected]

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Coronavirus

Update: Health Minister states side effects of COVID-19 vaccines

Dr. Osagie Ehanire has disclosed the side effect of the COVID-19 vaccines.

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Nigeria to vaccinate 20 million people against Covid-19. Chinese Engineering firm donates medical supplies to Nigeria

Minister of Health, Dr. Osagie Ehanire has stated the side effects of the COVID-19 vaccines, which he said is mild.

The minister disclosed this during the live broadcast when President Muhammadu Buhari took his vaccine shot on Saturday.

According to the Minister, the reactions are usually mild and only few people had complained of mild pain in the part of the body they got the shot.

He said, “It is not everybody that complained of reactions/side effects but few had complained of mild pain at the part of the body they got the shot.

”Usually manufacturing vaccines take not less than 4 years but this only took about 1 year, which is the reason some people are apprehensive about the vaccines. This was manufactured in the United Kingdom and has been certified.”

Ehanire, explained that the jab is painless as a narrow gauge syringe was used with a small quantity injected in the upper arm.

He added that the after-effects are mild but accompanied by little discomfort in the area that was injected.

Present at the brief ceremony were the Secretary to the Government of the Federation (SGF) Mr Boss Mustapha; Minister of Information and Culture, Alhaji Lai Mohammed; the Chief of Staff to the President, Professor Ibrahim Gambari and other members of the Presidential Task Force (PTF) on COVID-19, senior government officials and journalists.

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Coronavirus

Update: President Buhari, VP Osinbajo get COVID-19 vaccine shots

President Buhari and VP Osinbajo have been vaccinated against COVID-19 on Saturday at the State House, Abuja.

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President Muhammadu Buhari and Vice President Yemi Osinbajo have been vaccinated against COVID-19 on Saturday at the State House, Abuja.

President Buhari and VP, who received his COVID-19 vaccine shot on Live TV broadcast, urged Nigerians to emulate him and do the same to curb the pandemic in the most populous black nation.

 

Both were administered their jabs, on Saturday morning, at the Banquet Hall of the presidential villa, Abuja at a ceremony broadcast live on national television.

Their inoculation followed their e-registration and filling out of their vaccination cards by the Executive Director of the National Primary Health Care Development Agency (NPHCDA), Faisal Shuaib.

Vaccination of Buhari was done by Chief Personal Physician to the President, Dr Suhayb Rafindadi.

Osinbajo was also vaccinated by his personal physician, Dr Nicholas Audifferen.

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