The slump in oil prices caused by the coronavirus pandemic has forced many companies, including IOCs to slash their capital budgets and suspend some projects. The global oil benchmark, Brent crude, plunged to as low as $15.98 per barrel in April, its lowest since June 1999. The company warned that the outlook for oil demand continued to be uncertain, saying it had cut its exploration drilling plans for this year from 77 wells to just 22. The oil giant, which suffered a loss of $610m in Q1 2020, slashed capital spending by 30 per cent this year to around $23bn. The recent collapse in oil prices and demand caused by the coronavirus pandemic and the price war between Saudi Arabia and Russia has compounded the challenges facing the projects.

Source: Punch August 03, 2020 23:03 UTC