capex

Oil & Gas

Total cuts oil output target as low prices expected to persist

Total SA, Europe’s second-biggest oil company, scaled back its production target for 2017 as it announced a further round of investment cuts and project delays to protect its dividend. Total expects to produce 2.6 million barrels of oil equivalent a day, compared with a previous forecast of 2.8 million barrels a day, the company said Wednesday before holding an investor day in London. The measures are a sign that oil majors are extending their belt-tightening into next year and 2017 after companies from Chevron Corp. to Royal Dutch Shell Plc announced large spending cuts for 2015.

Markets

BP cuts capex to $20billion in 2015

BP is to cut investment for this year by a fifth or as much as six billion US dollars (£4 billion) as it adjusts to the “new reality” of lower oil prices, boss Bob Dudley said today. His stark message came as the group slumped to a 969 million dollar (£645 million) replacement cost loss for the fourth quarter, down from a profit of 1.51 billion US dollars for the same period in 2014. BP recorded a $3.6 billion dollar hit including write-downs on assets in the North Sea and Angola and on the falling oil price. Its results came as oil and has exploration firm BG Group - originally a spin-off from the privatisation of British Gas - also slashed capital expenditure plans for 2015, by $6-7 billion.

Markets

Marathon Oil: Investment and exploration budget to be 20% lower

Marathon Oil has estimated its investment and exploration budget will be 20% lower for 2015. The company said the capital program of around $4.5billion for next year will reflect a significant weighting to the company’s high return investment opportunities in the US as well as lower exploration spending. Marathon said the “continuing dynamic change” in crude oil markets, together with the expected impact to oilfield service cost, mean it will need additional time before the budget is finalised.