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Eni to slash 2020 capex by €2bn

Italy’s supermajor Eni has announced that it will reduce Capex in 2020 by around €2 billion, equal to 25% of the total Capex planned, and opex by around €400 million. In 2021, Eni expects a Capex reduction of around €2.5-3 billion, equal to 30-35% of the capex scheduled for the same year in the business Plan.

The projects involved are related mainly to Upstream activities, particularly production optimization and new projects developments scheduled to start in the short term. In both cases, activities will be restarted as soon as appropriate market conditions appear, and related production will be recovered accordingly. As a result of these measures and the current depressed scenario, production in 2020 is expected between 1.8 and 1.84 million barrels of oil equivalent per day, and it will remain unchanged in the following year.

Eni CEO Claudio Descalzi commented: “We are taking these actions in order to defend our robust balance sheet and the dividend while maintaining the highest standards of safety at work.”

Source: Petroleum Africa