BG cuts capex, writes down $8.9bn

摘要

The UK’s BG will cut its capital expenditure (capex) to $6bn- 7bn in 2015, a 30pc reduction compared with its previous plan for this year and down from 2014. The lower spend reflects significantly lower oil prices and the completion of some projects. BG’s capex stood at $9.4bn last year and the firm had expected to invest $8bn-10bn in 2015. But it has now deferred discretionary spend on exploration and has rescheduled a number of projects in Australia, Egypt and Tanzania, as well as some development wells in the UK. New projects are under scrutiny and can be postponed or cancelled if they do not provide the right economic return, the company says.