State-owned oil company Saudi Aramco will cut $25bn-$30bn from its capital expenditure in response to the coronavirus pandemic.
However, analysts have said this may affect its acquisition of Indian petrochemical company Bharat Petroleum Corporation Limited (BPCL).
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Aramco also planned to gain a further 20% stake of Reliance Industries oil-to-chemicals business. It says the proposed dead is still being assessed.
The Saudi Arabian company originally planned to spend $35-40bn on capital expenditure. However, it has made cuts in response to volatile markets and the continuing coronavirus pandemic.
Yesterday, Gulf Keystone announced its plans to reduce capital expenditure, particularly on the Shaikan field in Iraq.
It estimates that, including spending to date this year, its 2020 capex will be $50m-$60m.
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By GlobalDataThis will result in a decline in its planned production levels. The company was aiming to produce 55,000 barrels of oil per day, but will now suspend guidance “until such time as the outlook becomes clearer”.
