Eni cuts 2020 capex 25%, opex 30-25%

Eni will cut its 2020 capital expenditures (capex) by €2 billion, or 25%, and its operating expenditures by €400 million due to the sharp decrease in commodities prices and the foreseeable constraints arising from the COVID-19 pandemic.

In 2021, Eni expects a capex reduction of €2.5-3 billion, or 30-35% of the capex scheduled in its business plan.

Projects impacted by the cuts are related mainly to upstream activities, the company said, particularly production optimization and new projects developments scheduled to start in the short term. In both cases, activities will be restarted as soon as appropriate market conditions appear, and related production will be recovered accordingly, the company said.

Eni expects 2020 production of 1.8-1.84 MMboe/d, remaining flat in 2021.