Oil major ConocoPhillips has cut its capital budget for 2015 by 20%, the company said.
The reduction, to a CAPEX of $13.5billion, has been influenced by relatively lower spending on major projects as well as the deferral of spending on US shale.
Ryan Lance, chief executive, said: “We are setting our 2015 capital budget at a level that we believe is prudent given the current environment.
“This plan demonstrates our focus on cash flow neutrality and a competitive dividend, while maintaining our financial strength.
“We are fortunate to have significant flexibility in our capital program. Spending on several major projects has peaked and we will get the benefit of production uplift from those projects over the next few years.
“In addition, we have significant identified inventory in the unconventionals, where we also retain a high degree of capital flexibility.”
Conoco said it expects to achieve 3% production growth in 2015 from continuing operations.
Areas of growth include major project start-ups in Canada, Europe and Malaysia, as well as development drilling in the Eagle Ford and Bakken.
