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OSLO, March 23 (Reuters) - Norwegian independent oil firm
Aker BP will postpone non-sanctioned projects to cut
its planned 2020 capital and exploration spending by 20% due to
the coronavirus but maintains its production guidance, it said
on Monday.
Capital spending for this year would be reduced to $1.2
billion and exploration spending to $400 million, while in
2021-2022 it expects capital spending to be "well below" $1
billion.
It also aimed to cut production costs by around 20% to $7-8
per barrel of oil equivalent by postponing all non-critical
activities, such as maintenance, it added.
"With the measures we are now undertaking, Aker BP is well
prepared to face the challenging market situation, and we have
the financial resources to pursue value accretive growth
opportunities ahead," Aker BP's Chief Executive Karl Johnny
Hersvik said.
The planned measures, which include postponement of the Hod
and Valhall field redevelopment projects, are not expected to
have a material impact on the company's production capacity in
2020, and its guidance of 205,000-220,000 barrels of oil
equivalent (boe) per day remained unchanged, Aker BP said.
The company said its ambition to continue paying dividends
"remained firm", but the board still had to assess the impact on
its balance sheet and liquidity from the coronavirus and oil
price fall.
Aker BP had previously planned to pay $850 million in
dividends in 2020, increasing payouts by $100 million each year
until 2023.
Norway's largest oil and gas firm Equinor said on
Sunday it had suspended its ongoing $5 billion share buyback
programme due to the coronavirus and the fall in oil
prices.
Oslo-traded shares of Aker BP, 30% owned by BP, were
down 4.6% at 0833 GMT, underperforming a European oil and gas
index down 3.65%.
(Reporting by Nerijus Adomaitis; Editing by Gwladys Fouche and
Andrew Cawthorne)
