Chevron is to make cuts of $4 billion (£3.2bn) to its 2020 capital spending in the face of collapsing oil prices and the coronavirus’ hit on global crude demand.
The US oil giant said it would “continue to execute” plans to reduce operating costs by more than $1 billion (£820m) by the end of the year.
On an annual basis, the cuts in upstream spending imposed now will equate to a 30% drop compared with the budget announced in December 2019.
Michael Wirth, Chevron Chairman and CEO, said: “With an industry leading balance sheet and a flexible capital program, we believe Chevron is resilient and positioned to withstand this challenging environment.
“Given the decline in commodity prices, we are taking actions expected to preserve cash, support our balance sheet strength, lower short-term production, and preserve long-term value.”