Eni has revised its planned activities this year due to the sharp fall in commodities prices and "foreseeable constraints" arising from the Covid-19 pandemic, the Italian major said in a statement on Wednesday.
Eni will reduce capital expenditure in 2020 by around 2 billion euros, equal to 25% of the total Capex planned, and operational expenses by around 400 million euros, the statement said.
Eni expects a Capex reduction of around 2.5-3 billion euros next year, equal to 30-35% of the capex scheduled for the same year in the company's business plan, according to the statement.
“We are taking these actions in order to defend our robust balance sheet and the dividend while maintaining the highest standards of safety at work," said Eni's chief executive Claudio Descalzi.
The projects involved are related mainly to upstream activities, especially production optimization and new development projects scheduled to start in the short term.
These activities will restart "as soon as appropriate market conditions appear" and related production "will be recovered" the statement said.
Output is seen at between 1.8 and 1.84 million barrels of oil equivalent per day this year and in 2021 due to Eni's revised business plan "and the current depressed scenario" the statement noted.
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