Maersk Oil Cuts Exploration Spend in 2015

Maersk Group announced Friday in its third quarter results statement that its Maersk Oil subsidiary expects its exploration costs in 2015 to be almost $300 million lower than last year, due to the reduction of exploration activity.

Maersk Oil anticipates that its exploration spend in 2015 will come in at around $500 million, which marks a significant decrease from the $765 million the company spent last year on exploration. The company spent $82 million on exploration in 3Q 2015, compared to $210 million in the previous year.

Commenting on the decision to reduce exploration activities, a Maersk Oil statement in the group’s overall 3Q results said:

“Maersk Oil’s exploration activities have been reduced in light of the oil price expectations and the disappointing exploration results over the past couple of years.”

Maersk Oil posted a profit of $32 million in 3Q, compared to a profit of $222 million last year, and revealed in October that it will be reducing its overall global workforce by a further 10-12 percent, taking the total number of positions removed during 2015 to approximately 1,250. Maersk Oil’s staff cuts form part of the company’s drive to reduce operating costs by 20 percent by the end of 2016.