Coronavirus company news summary – Outbreak at LNG Canada operations – Petrobras cuts investment plan by 27% – ExxonMobil to retrench hundreds of workers

27 November 2020 (Last Updated November 27th, 2020 10:08)

27 November

LNG Canada reported a coronavirus outbreak at its site in Kitimat municipality in Western Canada affecting more than 40 employees. 16 workers are in self-quarantine at the site, and the project owners are working with local health authorities to trace contacts. LNG Canada is also disinfecting and sanitising the site to stop the further spread of the virus and ensure safety of the workers.

The slump in oil demand and prices has pushed Brazil’s Petrobras to reduce its five-year investment plan by 27% to $55bn. The oil company cut its spending plan to preserve cash, as it considers investing $46bn, accounting for 84% of its overall investment, in oil exploration and production.

US oil major ExxonMobil is planning to slash roughly 300 jobs to cut losses triggered by the decline in oil demand owing to the ongoing pandemic. Earlier in the year, the company reduced its budget by more than $10bn as part of its cost cutting measures. Investments in upcoming projects also contributed to Exxon Mobil’s losses.

Genel Energy’s Sarta oil field located in Kurdistan region of Iraq has started producing oil. The first phase entails tying of two oil wells to a 20,000bpd early production plant, while the second phase is expected to go online in January 2021. The oil field was originally scheduled to commence production in the third quarter of 2020 but delayed due to challenges posed by the coronavirus pandemic including the closure of borders.