ExxonMobil says PNG operation will go as usual
EXXONMOBIL’s PNG operations continue to operate normally, according to a company spokesperson.
The spokesperson made the statement following reports in Reuters this week which said ExxonMobil would make “significant cuts” to spending in the face of the unprecedented slide in oil prices due to the global coronavirus outbreak, which sent the company’s shares to a 17-year low.
When The National asked whether the company’s PNG operations would be affected as a result of this decision, the spokesperson said: “Our PNG LNG project continues to operate normally.”
Reuters on Monday reported that US crude futures settled under US$29 (K97.56) a barrel, down from US$61 (K205.22) at the start of the year.
The decline has cut new drilling and led producers to seek price cuts from suppliers.
Weaker demand and rising supply could lead to a six million barrel per day surplus by April, further pressuring prices.
Exxon shares fell on Monday to US$34.49 (K116.03), a level last touched in 2003, and sent its dividend yield to a record 10.1 per cent.
The stock gained US$1 (K3.36) in late trading on the expense cuts.
“We are evaluating all appropriate steps to significantly reduce capital and operating expenses in the near term,” Exxon chief executive Darren Woods said in a statement.
“We remain focused on being a safe, low-cost operator and creating long-term value for shareholders.”