Bloomberg: Statoil to deepen cost cuts to generate another $5B cash


Statoil (STO +1.7%) is preparing to make further cuts in capex by as much as 25%, operating costs by 15% and eliminating 20% of technical staff to generate an additional $5B/year of cash, Bloomberg reports, citing internal company documents.

STO reportedly stated in the documents that it “faces escalating costs and declining returns, and needs to significantly improve cost and resource efficiency."

The proposed measures appear to signal cutbacks on top of those disclosed at a strategy update earlier this year when STO said it was looking to cut costs by more than $5B during 2014-16 and reduce annual investments by 8% to $20B over the period.

Earlier: Norway deal expected to ease path for Johan Sverdrup project.

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