BP Can Cut Spending by 20% This Year, CFO Says

British oil major may study cutting spending in U.S. onshore
Company has no plans to return to scrip dividend at present

WATCH: BP CFO Brian Gilvary sees up to 20% being shaved off capital expenditures this year.(Source: Bloomberg)

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By Helen Robertson and Rakteem Katakey

March 16, 2020 at 12:50 PM UTC

Updated on

March 16, 2020 at 2:34 PM UTC

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BP Plc said it can slash its spending by as much as 20% this year as the oil market goes into freefall, with some U.S. operations likely to get less investment.

The London-based oil major’s shares have fallen about 40% since the OPEC+ alliance broke down after a showdown between Saudi Arabia and Russia, triggering a price war as the kingdom vowed to send a flood of cheap crude to Europe. BP stock was trading down 7% at 2:40 p.m. London time on Monday.