Energy giant bpTT has reduced the amount of money it plans to spend in Trinidad and Tobago on oil and gas projects this year.
Chief executive officer Robert Riley said yesterday bpTT brought its capital expenditure down from a projected US$1 billion to US$600 million this year.
The company projected a US$240 million capital expenditure investment on oil and gas projects for the first six months of 2009.
Its operating expenditure this year so far has been slightly higher at US$280 million, Riley said during a luncheon at bpTT's Port of Spain offices.
The company has recovered 461 million barrels of oil equivalent in the first half of 2009, above the 457 mboed a year ago.
But bpTT is also on a drive to improve efficiency at all levels of operations, given the continuing environment of high costs, a downturn in the economy and low natural gas prices on the international markets.
"We have a simple map -to improve efficiency and not expand when you don't have to," Riley said.
He noted that bpTT was in a "battle" to keep costs down and cut back on company travel expenses among other things.
It has also adjusted its arrangements with subcontractors, including large drilling firms that work with the company on offshore programmes.
"We have not gone in with a big stick, but we let them know that they can't get the returns they were getting when oil was at US$100 and there were high Henry Hub prices (for gas)," Riley said.
He said energy taxes paid by bpTT and other exploration and production companies also remained high, and the company hoped for a new tax regime from the Government.
