ConocoPhillips said it will reduce its capital budget by 4% to $5billion next year as it looks to cut costs.
The US independent oil producer said the cuts are a reflection for efficiency gains which reduce the cost of drawing oil and natural gas from the earth but also low commodity prices.
The spending reduction comes after the firm more than halved its budget last year.
The firm has also revealed it plans to sell $8billion worth of assets.
Chief executive Ryan Lance, said:”During the past two years, we have significantly transformed ConocoPhillips to succeed in a lower, more volatile price environment.”
Most of the firm’s budget will be spent on shale projects in the US with some focus on Europe and Alaska also.
The spending should results in production of 1.54million to 1.57million barrels of oil equivalent next year.
ConocoPhillips also announced a $3billion share repurchase program and said it would sell $5billion to $8billion in assets, mostly from its North American natural gas operations.
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