Inpex reviewing investment plans amid oil price decline and coronavirus crisis

Japan’s Inpex Corporation is reviewing its investment plans and looking into other cost-reducing measures due to the current market situation and the impact of the coronavirus and the oil price decline on its business operations. 

Shipping of condensate from the FPSO Ichthys Venturer and the CPF Ichthys Explorer in the background (far right). Source: Inpex

In a notice concerning the impact of the oil price decline and the coronavirus pandemic, Inpex said on Wednesday that the prices of oil and natural gas are determined in large part by international market trends, which are influenced by numerous factors including international and regional supply and demand fluctuations as well as the condition of the global economy and financial markets.

Currently, oil prices are rapidly declining due to the expectation of a reduction in energy demand following a global economic downturn induced by the COVID-19 pandemic, and the breakdown of the OPEC+ production cut agreement.

While it remains a challenge at this stage to forecast how long these conditions will last, Inpex said its policy is to minimize the impact of oil prices maintaining their current level for a certain amount of time by optimizing operations, reviewing investment plans group-wide, and pursuing further cost-reduction measures, in order to sustain stable business operations.

The company said it would disclose the impact to the forecasted consolidated operating results for the year ending December 31, 2020, announced on February 12, 2020, in a timely manner once the impact was determined.

If Inpex decides to reduce its spending for 2020, it would be joining many oil and gas operators around the world, some of which have taken drastic measures to cut their spending for this year as well as the next.


Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email.

Also, if you’re interested in showcasing your company, product, or technology on Offshore Energy Today, please contact us via our advertising form where you can also see our media kit.

Share this article

Follow Offshore Energy Today

Events>

<< Mar 2020 >>
MTWTFSS
24 25 26 27 28 29 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

Navingo Career Event

The Navingo Career Event is Europe’s biggest career event for the maritime…

read more >

Offshore Technology Conference (OTC) 2020 Postponed

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

OWI APAC 2020

Over the two-day conference, 30 expert speakers will share exclusive insight to help drive well work efficiencies through innovative…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply