Cenovus cuts 2020 capital spending plan
Cenovus now plans between $900M and $1B in total capital spending this year
Cenovus Energy Inc. is cutting its capital spending plan for this year by 32% due to the recent plunge in world oil prices.
The company now plans between $900M and $1B in total capital spending this year, down from earlier plans for between $1.3B and $1.5B.
The price of oil collapsed on March 9 over a dispute between Russia and Saudi Arabia regarding plans to cut oil production.
The fight between the major oil producers compounded worries about lower demand due to slower economic growth as a result of the novel coronavirus outbreak.
Cenovus also said it is temporarily suspending its crude-by-rail program and deferring final investment decisions on major growth projects.
The total production this year is expected come in between 432,000 and 486,000 barrels of oil equivalent per day, down from its earlier guidance for between 472,000 and 496,000 barrels of oil equivalent per day.