Norwegian state-run energy group Equinor has announced a $3bn action plan to strengthen the financial resilience of the company in a market impacted by coronavirus and low commodity prices.
Under the plan, Equinor will reduce organic capex for 2020 by around 20% from $10-11bn to around $8.5bn, reduce operating costs by around $700m, and cut exploration activity from around $1.4bn to around $1bn.
The cost reductions come in addition to the already announced suspension of a share buy-back programme until further notice.
“Equinor is in a strong financial position to handle market volatility and uncertainty. Our strategy remains firm, and we are now taking actions to further strengthen our resilience in this situation with the spread of the corona virus and low commodity prices,” said Eldar Saetre, president and CEO of Equinor.
“We have implemented measures to reduce the risk of spreading the corona virus and have so far been able to maintain production at all our fields. Safe operations remain our first priority in this situation,” Saetre added.