FACTBOX-Oil companies cut capex after crude plunges

Fri Jan 30, 2009 5:58pm GMT

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Jan 30 (Reuters) - Many oil companies are slashing investment in the face of a $100/barrel collapse in crude prices but, keen to avoid past mistakes and to gain from others' weakness, the very biggest players are holding spending steady. [ID:nLU766665]

The following are a list of oil companies' capital expenditure (capex) plans for 2009.

Royal Dutch Shell Plc (RDSa.L), the world's second-largest non-government controlled oil company by market capitalisation, said on Jan. 29 it would lift capex to $31-32 billion, excluding acquisitions, in 2009, from $30 billion in 2008.

Chevron Corp (CVX.N), the second-largest U.S. oil company, said on Thursday its 2009 capital spending program will total $22.8 billion, unchanged from 2008.

French oil giant Total (TOTF.PA) plans to keep investments stable in volume terms, CEO Christophe de Margerie said in a television interview in late January, although de Margerie hopes lower industry costs will bring the value of spending down.

ConocoPhillips (COP.N), the third-largest U.S. oil company said on Jan. 16 it would slash its capital spending 38 percent this year and cut about 1,300 jobs, citing a steep decline in oil and gas prices.

Occidental Petroleum Corp (OXY.N), the fourth-largest U.S. oil company, said it would slash spending by 25 percent in 2009 to $3.5 billion as the company moves to protect its profit margins.

Talisman Energy Inc (TLM.TO), Canada's No. 3 independent oil exploration firm, said earlier in January it plans to shave its 2009 spending program to about C$4 billion from the C$5 billion to $5.3 billion in expected outlays for 2008, to cope with low oil prices.

Canada's No. 4 oil producer and refiner Petro-Canada PCA.TO said in December it planned to cut capital spending 36 percent to C$3.96 billion in 2009 and in January warned that weak oil and gas prices could force it to cut spending even deeper.

LUKOIL, Russia's largest private oil company and 20 percent-owned by ConocoPhillips, said in December it would cut planned capital expenditure in 2009 to $9.7 billion from an earlier forecast of $11.2 billion.

In November, Chief Executive Vagit Alekperov said the company could halve its 2009 capital spending programme to $4 billion if the global oil price falls below $45/bbl.

Gazprom Neft (SIBN.MM), the oil arm of Russian gas export monopoly Gazprom (GAZP.MM) and Russia's fourth-largest oil producer, could slash capex by 45 percent in 2009 if the oil price falls to $32 per barrel, its chief executive said.

Gazprom, the world's largest gas producer, said in December its 2009 capital investments would rise 32 percent to 699.88 billion roubles ($19.76 billion).

Hungarian oil and gas group MOL MOLB.BU said in November it planned to cut capital expenditure by 35 percent in 2009.

Kazakh oil producer KazMunaiGas Exploration and Production (KMG E&P) (KMGq.L) said in December it planned to roughly halve capex to 36.5 billion tenge ($296 million) in 2009.

Devon Energy Corp (DVN.N) said in December its 2009 capital expenditure would roughly match its cash flow, leading to a drop from 2008, and delayed the announcement of the capex budget until early in 2009. ($1=35.41 Rouble) (Reporting by Tom Bergin; Editing by Jon Loades-Carter)