French oil company Total will implement an action plan if the oil price decline continues and stays at the level of $30 per barrel, according to Total CEO Patrick Pouyanne in a statement on Monday.
In a video message to the company's official web page, Pouyanne said the group was facing three crises - the coronavirus outbreak, the crash in oil prices due to a sharp fall in global oil demand just as supply is expected to rise, and the climate change crisis.
To counter these crises, the company will cut Organic Capex of more than $3 billion, or more than 20%, reducing 2020 net investments to less than $15 billion, the statement said.
In addition to cuts to Organic Capex, two more steps will be taken.
The first is a revision in operating costs for 2020 from savings of $300 million previously announced to $800 million. The second step is through the suspension of the company's buyback program that was announced in 2020 based on $60 per barrel in which the company bought $550 million in the first two months.
By Gokce Topbas