EXXONMOBIL anticipates a 25 per cent cut in its capital spending to US$23 billion in 2016 as the company moves to focus on the fundamentals, chief executive Rex Tillerson has told analysts.
Speaking at the company’s annual analyst meeting at the New York Stock Exchange, Mr Tillerson said the company would remain steadfast in its mission to create superior long-term shareholder value.
“We have the financial flexibility to pursue attractive opportunities and can adjust our investment program based on market demand fundamentals,” he said.
In its announcement, the company said it was selectively advancing its investment portfolio and was building upon attractive longer-term opportunities.
ExxonMobil is on track to start up ten new upstream projects in 2016 and 2017, adding 450,000 oil-equivalent barrels per day of working-interest production capacity, it said, with the group having started 22 major upstream projects since 2012.
The corporation achieved a total net reduction of $12 billion in both capital and cash operating costs in 2015, with upstream total unit costs down 9% from 2014.
ExxonMobil made the announcement shortly after a new office for the ExxonMobil run PNG LNG project, as well as ExxonMobil PNG and Mobil Oil New Guinea was opened by Prime Minister Peter O’Neill in Port Moresby on 24 February.
Located at 7 mile, the office will serve as the company’s headquarters for all its operations within the country and builds on PNG LNG’s US$18.8 billion investment in Papua New Guinea.
ExxonMobil PNG managing director Andrew Barry said the office was more than bricks and mortar, exemplifying safety security, environment, integrity, excellence and teamwork.
“It demonstrates our commitment to running our operations to the highest of standards and our desire to provide an environment that further develops our local workforce, which is 80% Papua New Guinean,” he said.
“The office is also scalable as ExxonMobil PNG and our co-ventures seek to grow our business in Papua New Guinea.”Features include the use of solar panels to supplement gas heating for hot water and motion sensors and timers controlling lighting to reduce energy consumption. Recycled water is also used for irrigation purposes on the gardens and sports field, the company said.