On Wednesday, Italian energy producer Eni said that it would cut its capital expenditures by 25% in 2020 and more next, as it tries to cushion the impact of slumping commodity prices due to the coronavirus pandemic.
This year, Eni will cut its CAPEX by EUR2 billion (USD2.2 billion) and by EUR3.0 billion (USD3.3 billion) in 2021.
Eni will also cut operating expenses this year by around EUR400 million (USD438.7 million).
CEO Claudio Descalzi said that the measures were taken to defend the balance sheet and the dividend.
The cuts will mainly affect the company’s core business of explorations for oil and gas. Added operations would be resumed immediately once conditions are deemed more favorable.
Eni expects output for the year to be between 1.8-1.84 million boepd, and the same in 2021.
