The oil and gas producer announced plans to cut its 2015 capital budget by 20% from a year ago to $13.5 billion. The company said the reduction in capital reflects its decision to lower spending on major projects, as global crude oil prices continue to decline.
Brent crude plunged to a five-year low of $58.50 per barrel earlier this week, as Brent futures for January delivery are falling 1.83% to $60.06 as of 12:07 p.m. today, while WTI crude is down 1.77% to $55.47 per barrel.
The Energy Information Administration released its report yesterday that showed crude inventories declined by 800,000 barrels to 379.9 million in the week ended December 12.
The bid is the largest-ever for a license in Canada's Newfoundland and Labrador province, where Statoil (STO) announced the huge Bay du Nord find last year.
Bay du Nord is estimated to contain up to 600 million barrels of light, sweet crude.