Providence Expects Further CAPEX Cuts in 2016

The board of Providence Resources plc is anticipating further capital expenditure savings next year, following a cost reduction program in 2015 that has seen the company’s CAPEX almost halve.

Providence’s CAPEX is now forecasted to reduce by around 40 percent in 2015, compared to 2014 levels, and its G&A costs are expected to decrease by 12 percent this year. Further G&A cost reductions are also planned for 2016, according to a company statement.

Tony O'Reilly, chief executive of Providence, commented in a company statement:

“In view of the challenging global industry environment, the board continuously reviews the company’s capital structure and cost base to ensure it is appropriate to support its operations.

“During 2015, the board…initiated a cost reduction program in order to remove non-essential costs from the business which will deliver meaningful savings going forward.”

Earlier this month, Providence Resources agreed to increase its equity stake in Standard Exploration Licence (SEL) 2/11, offshore Ireland, to 100 percent, with the assignment of a 50 percent interest from its partner, PSE Seven Heads Limited. The company revealed in September that it remains “well placed” to deliver its plans and that it continues to be optimistic about the Irish oil and gas sector in spite of a challenging industry backdrop.

Have a news tip? Share it with Rigzone!


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

More from this Author
Rigzone Staff
e-mail us at
 -  Polarcus Bags Broadband 3D Marine Seis... (Sep 23)
 -  PETRONAS Signs Contract with Schlumber... (Sep 23)
 -  Valmec Clinches Supply, Construction C... (Sep 23)
 -  Tullow Oil Confirms Turret Bearing Cov... (Sep 23)
 -  Sound Renegotiates Sidi Moktar Acquisi... (Sep 23)

Most Popular Articles

From the Career Center
Jobs that may interest you
Project Cost Controls Specialist
Expertise: Cost Engineer|Project Controls
Location: 52723
Logistics Coordinator
Expertise: Budget / Cost Control|Estimating|Supply Chain Management
Location: Tupman, CA
Accounts Payable Manager
Expertise: Accounting|Financial Analyst|Payroll
Location: KCMO, MO
search for more jobs

Brent Crude Oil : $45.89/BBL 3.69%
Light Crude Oil : $44.48/BBL 3.97%
Natural Gas : $2.96/MMBtu 1.00%
Updated in last 24 hours