Eni has decided to reduce its capital expenditure (capex) plan by €2.3bn in 2020 (-30%) and by €2.5-3bn (-30 to -35%) in 2021 in a context of falling oil prices and epidemic outbreak. The capex reduction will focus on the exploration and production (E&P) segment, with several project re-phased. The Italian energy group, which produced 1.87 mboe/d of oil and gas in 2019, has reduced its 2020 production forecast from 1.9 mboe/d to 1.75-1.8 mboe/d in 2020. This production cut is due to capex curtailments, pandemic effects, a lower gas demand and the extension of force majeure in Libya for the first half of 2020.
In March 2020, Eni had already presented plans to reduce capex in 2020 by around €2bn, i.e. 25% of the total capex planned, and operational expenditures (opex) by around €400m. Eni now plans to save around €660m in opex in 2020.