Woodlands-based Anadarko on Friday said it will slash its 2016 spending by almost 50 percent, and expects minimal funding in its Mozambique LNG project during the year.
Anadarko expects capital investments will be in a range of $2.6 billion to $2.8 billion in 2016, down by almost 50 percent as compared to the year before.
In Mozambique, Anadarko expects minimal funding in 2016 as it works three parallel paths toward a final investment decision (FID) for its LNG project.
These processes include securing the necessary legal and contractual framework, progressing more than 8 million tonnes per annum of off-take toward long-term sales contracts and advancing project financing, the company said in a statement.
Anadarko also said it plans to monetize up to $3 billion of assets in 2016, due to a depressed oil price environment.
“As we announced last week, we have already closed or announced monetizations totaling approximately $1.3 billion, and we expect our cash position to be further strengthened during the year through substantial cost reductions and additional identified monetization opportunities. We will also benefit from the recent action by our Board to reduce our dividend, which will provide approximately $450 million of additional cash this year,” said Al Walker, Anadarko Chairman, President and CEO.
LNG World News Staff