US oil and gas giant, ExxonMobil, is looking to significantly reduce spending as a result of market conditions caused by the COVID-19 pandemic and commodity price decreases, energynewsafrica.com can report.
The coronavirus pandemic has slowed demand for oil, plunging the price of the commodity below US$30 per barrel.
In a statement signed by Darren Woods, Chairman and Chief Executive Officer of ExxonMobil Corporation, it said: “Based on this unprecedented environment, we are evaluating all appropriate steps to significantly reduce capital and operating expenses in the near term.
“We will outline plans when they are finalised,” he added.
Woods said that ExxonMobil has faced numerous market downturns throughout its long history and has experienced operating in a sustained low-price environment.
“We remain focused on being a safe, low-cost operator and creating long-term value for shareholders,” said Woods.
The company is closely monitoring the COVID-19 pandemic and has adjusted work arrangements to ensure a healthy work environment and support communities where it operates.
Woods stressed the company would maintain its ongoing commitment to safety and environmental performance.
“We are confident that we will manage through these challenging times by taking deliberate action to keep our people safe, our environment protected and our company strong,” said Woods.
Sources:www.energynewsafrica.com