Nigeria's Seplat slashes costs, drilling plans amid oil price crash -CFO

Published 23/03/2020, 15:04
Updated 23/03/2020, 15:06
© Reuters.

LAGOS, March 23 (Reuters) - Nigerian oil company Seplat
SEPLAT.LG is targeting cost cuts of at least 30% amid a steep
oil price crash, an executive told Reuters on Monday.
Chief Financial Officer Roger Brown said the cuts, which
would ideally be higher in the short term, would see its
drilling plans reduced to three wells from the 15-20 it had
planned.
"We are cutting back on capex quite significantly and
focusing on higher, more prolific oil wells," Brown said.
Seplat has hedged 60% of its production at $45 per barrel
through the end of the third quarter, but said the company needs
to be prudent as oil prices, which have tumbled by more than 65%
since January highs, could fall further.
"We don't think we've hit the bottom of that yet," he said
regarding oil prices. "It's too early for us to call that."


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