Nigerian oil company Seplat is targeting cost cuts of at least 30% amid a steep oil price crash, an executive told Reuters on Monday.
Chief Financial Officer Roger Brown said the cuts, which would ideally be higher in the short term, would see its drilling plans reduced to three wells from the 15-20 it had planned.
“We are cutting back on capex quite significantly and focusing on higher, more prolific oil wells,” Brown said.
Seplat has hedged 60% of its production at $45 per barrel through the end of the third quarter, but said the company needs to be prudent as oil prices, which have tumbled by more than 65% since January highs, could fall further.
“We don’t think we’ve hit the bottom of that yet,” he said regarding oil prices. “It’s too early for us to call that.”