Energy company Hess has further trimmed its exploration and production (E&P) capital and exploratory budget for 2020 to $1.9bn, which is down by 37% from the company’s original $3bn budget.

The estimated  E&P capital and exploratory expenditures were $631m for the first quarter this year (Q1 2020), compared with $542m in the corresponding period last year (Q1 2019).

The company now expects production of 35,000 barrels of oil equivalent per day (boepd) in second quarter, and about 50,000boepd for the whole year.

Hess reported a net loss of $2.43bn in the first quarter this year, which also includes impairment and other after-tax charges of $2.25bn resulting from low oil prices as a result of coronavirus pandemic, compared with net income of $32m in the first quarter of 2019.

The energy firm reported an adjusted net loss of $182m in first quarter this year.

Hess Corporation CEO John Hess said: “Our priorities in this low price environment are to preserve cash, preserve capability and preserve the long term value of our assets.

“Our company is in a strong position to manage through this market downturn and to prosper when oil prices recover – with our low cost of supply and high return investments that will drive material cash flow growth and increasing financial returns.”

In March this year, Hess decreased its capital and exploration budget, and took a billion-dollar loan.

In April 2018, Hess subsidiary Hess Guyana (Block B) Exploration signed an acquisition agreement with Esso Exploration and Production Guyana to purchase a 15% participating interest in the Kaieteur Block.