Malaysia’s Petronas plans to cut expenses by as much as $11.4billion over the next four years and defer some projects, according to reports.
The state oil company will go through another round of cuts to capital and operating expenditure, which was confirmed by a company representative.
Petronas faces a two to three years where crude prices could average $30 a barrel in 2016, chief executive Wan Zulkiflee Wan Ariffin said last week.
Brent crude has sunk to a 12-year low amid a global oversupply, delaying $380 billion worth of investment on 68 major upstream projects, according to industry consultant Wood Mackenzie Ltd.
The price plunge has forced companies and governments to reduce costs as revenues from hydrocarbon sales drop.
Petronas needs to square funding long-term projects for future growth and meeting dividend obligations to the government.
Wan Zulkiflee said Petronas remains committed to its multi-billion dollar projects as the company sticks to its capital expenditure plan of as much as 350 billion ringgit over the next five years.