Italian company Eni has adjusted the company’s financial outlook for the coming year and has announced capital expenditure (Capex) cuts of EUR 2.3 billion for 2020, according to a press release. 

The company’s outlook for Brent crude oil prices predicts it will go down to $45 per barrel in 2020 and $55 in 2021. There are anticipated further reductions of EUR 2.5-3 billion in 2021, which represents a 30-35% lower figure than original plans. 

In terms of production, expected production levels in 2020 have also been lowered to 1.75-1.80 million barrels per day (mmbbl) due to Capex reductions. As of now, Eni has not received any reported requests to lower production in line with OPEC+ cuts in the countries in which the company operates. 

Chief Executive Claudio Descalzi said “The period since March has been the most complex period the global economy has seen for more than 70 years. Like everyone, we expect a complicated 2020.”

Eni said that it is well equipped to deal with the current economic situation and boasts a liquidity reserve of EUR 16 billion.