* FACTBOX-Oil company spending cuts:
* GRAPHIC-Big Oil's 2020 capex cuts: https://tmsnrt.rs/3dszVEO
* GRAPHIC-Big Oil's rising debt: https://tmsnrt.rs/2U73Jit
LONDON, March 27 (Reuters) - The world's biggest oil and gas
companies are slashing spending this year following a collapse
in oil prices driven by a slump in demand because of coronavirus
and a price war between the top exporters Saudi Arabia and
Russia.
Cuts already announced by five major oil companies including
Saudi Aramco and Royal Dutch Shell come to a
combined $25 billion, or a drop of 20% from their initial
spending plans of $27 billion.
Norway's Equinor said on Wednesday it would cut
capital expenditure, or capex, by some $2 billion while Chevron
said on Tuesday it would slash its capex this year by $4
billion.
Others such as U.S. giant Exxon Mobil Corp and
Britain's BP have said they will cut capital expenditure
but haven't given specific figures as yet.
Brazilian oil company Petrobras said it was dialing back
short-term production, delaying a dividend payment and trimming
its 2020 investment plan, among other measures aimed at reducing
costs in the face of the coronavirus pandemic.
Oil prices have slumped 60% since January to below $30 a
barrel. Brent crude was or 1.7% at $26.70 per barrel on
Wednesday as faltering fuel demand outweighed a massive pending
U.S. economic stimulus package.
Investors also say that if the current crisis is prolonged,
the spending cuts announced by major oil companies may not be
enough to let them maintain dividends without adding to their
already elevated levels of debt.
The combined debt of Chevron, Total, BP, Exxon
Mobil and Royal Dutch Shell stood at $231 billion at the end of
in 2019, just shy of the $235 billion hit in 2016 when oil
prices also tumbled below $30 a barrel.
(Reporting by Ron Bousso; Editing by Elaine Hardcastle)
BP (BP.)
