On Thursday, the CEO of Qatar Petroleum, Saad Al Kaabi said that the company would cut around 30% of its expense in 2020 from the level in 2019 due to the steep fall in oil and gas prices.
“In June we will be somewhere in the range of 30% reduction in expenditure, CAPEX and OPEX,” Kaabi said.
The company followed several major energy companies around the world to cut spending due to the collapse of oil demand in the wake of the coronavirus-related restrictions globally.
He estimated that in only within a year or two, oil demand would recover to the pre-crisis levels.
Kaabi said that the prices of natural gas felt less damage as demand for electricity is still strong in the crisis. The company, being the largest liquefied natural gas (LNG) producer in the world, would not slash its gas exports.
In fact, Kaabi stated that QP is full steam ahead with expansion. Its plan to expand LNG capacity by 2024 is still on track. By that year, LNG output will be up to 110 mtpa from today’s 77 mtpa.
The plan is remaining on course despite the delay of the awarding of commercial tenders for the expansion project from April to the end of the year. Kaabi estimated several major global companies including ExxonMobil, Chevron, and ConocoPhillips, to take part in the tender once the project’s capital costs are understood in the next few months.
