Imperial Oil cut its 2020 capital outlook by $500 million to $1.1-1.2 billion, a 30% reduction compared to its original guidance of $1.6-1.7 billion.
Capital spending will focus on ensuring ongoing safe and reliable operation of assets, and paced investments to continue work on key growth-related projects at a level reflective of the current challenges presented by COVID-19 and the business environment, the company said.
In addition to capital spending cuts, Imperial has identified opportunities to reduce operating expenses by $500 million compared to 2019 levels.
Scope reductions have been identified for the planned second-quarter turnaround at Sarnia facility, and a planned coker turnaround at Syncrude has been deferred until this year’s third quarter as the company continues to assess the impact of COVID-19. Additional turnaround activity is being assessed.