IOCs and NOCs alike across the globe are slashing capital investment in a bid to shore up balance sheets in the face of collapsing oil prices. ExxonMobil this week confirmed a massive 30% cut ($10bn) to planned 2020 capex (MEES, 10 April), while even Saudi Aramco announced near-30% capex cuts last month (MEES, 20 March).
Many of these cuts will be realized by squeezing services firms – who routinely suffer during price downturns – as upstream producers seek to stretch every dollar as far as they can. This can result in significant savings for any producers willing to persevere with their plans despite the market downturn. Abu Dhabi state giant Adnoc appears to be one of them. (CONTINUED - 291 WORDS)