Oil and gas producer Kosmos Energy suspended its dividend on Tuesday and said it was aiming to reduce 2020 capital spending by 30% to become cash flow neutral at an oil price of $35 a barrel.
Oil giants including the world’s largest publicly traded oil company, Saudi Aramco, Chevron Corp and BP have outlined plans to cut spending after a plunge in prices sparked by a falling out between Saudi Arabia and Russia over output and the coronavirus pandemic.
Kosmos said it now plans to reduce its capital budget for the year to below $250 million from an earlier forecast range of $325 million to $375 million.
The company said it would suspend its dividend after the 2019 payout, which it expects to result of savings of $75 million a year.
A combination of these steps and cutting general and administrative costs by $60 million through job reductions and scrapping cash bonuses this year, Kosmos said it hopes to shave off $1 per barrel of oil equivalent produced.
Kosmos, which typically does not operate fields, expects its 2020 production to stay flat.
