Italian oil and gas exploration firm Eni has announced that it will slash its capital expenditure (CAPEX) budget for 2020 by more than £2 billion.
The reduction, which Eni said it due to current crisis scenario, has seen the firm make a 30% reduction in 2020 and review its industrial plan for the year to preserve the robustness of its balance sheet.
The firm also anticipates a reduction of nearly £2.6bn in 2021.
It said it will introduce widespread initiatives to save around £520 million of expenses in 2020.
Eni additionally envisages large output cuts and will “re-phase” a number of projects.
Claudio Descalzi, Eni chief executive, said: “The period since March has been the most complex period the global economy has seen for more than 70 years.
“For the energy industry, and in particular for Oil&Gas, the complexity is even greater given the overlap of the effects of the pandemic with the collapse in oil prices.
“Eni is tackling this period by relying on a safe operating organisation for its employees, contractors, and the populations of its host countries.
“Furthermore, Eni’s people have shown an incredible capacity and willingness to adapt to the difficult circumstances at the moment, allowing the Group to operate with full continuity.
“I would like to thank them for this. The business portfolio is more resilient than ever before, while the capital structure is very solid thanks to actions taken in recent years.
“Like everyone, we expect a complicated 2020, but thanks to our strengths we are sure we can swiftly resume our journey towards an even more profitable and sustainable future, as set out in our latest strategic plan.”