Japan’s Inpex slashes 2020 expenditures by almost a third on low oil prices

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Jan-March production rose 16% from year earlier

Output gain driven by Australia LNG project, Abu Dhabi

Expenditures for development, exploration, other items

Tokyo —
Japan’s largest upstream company Inpex on Tuesday said it has slashed its overall development, exploration and other expenditures by almost a third to Yen 219 billion ($2.04 billion) for 2020 as a result of the sharp drop in oil prices amid plummeting petroleum demand due to the COVID-19 pandemic.

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Inpex’s revised expenditure is down 27.2% from its earlier plan of Yen 301 billion for its fiscal year ending December 31, with its capital expenditures for development, accounting for over 20% of the reduction and exploration investments dropping more than 40%, a company spokesman said.

For the January-March quarter, Inpex produced 612,900 b/d of oil equivalent, up 16% from a year earlier, driven by increased output from including Australia’s Ichthys LNG project and Abu Dhabi oil fields, the spokesman said.

The increased oil production from Abu Dhabi was attributable to Abu Dhabi’s raised production target and increased production capacity as a result of additional investments, the spokesman said, declining to elaborate.