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ExxonMobil Adjusts Australian Drilling Plans Amid Coronavirus

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Exxon Mobil Corporation (XOM - Free Report) has decided to temporary halt drilling activities offshore the southeast coast of Australia for the rest of 2020 owing to the coronavirus pandemic.

The integrated energy giant added that it will continue to prioritize the safety of its workforce. In addition, the company will focus on maintaining its key operations and energy supplies to Australia.

ExxonMobil has also announced the completion of drilling of two wells at the West Barracouta development, located in the Bass Strait. For the time being, the energy giant has decided to adjust its work plans and focus on making the gas production infrastructure that will link wells of the project with the Barracouta gas field. The company expects completion of the construction work by early 2021, with gas flow to commence almost immediately.

Investors should know that the pandemic has convinced ExxonMobil to slash capital budget. Recently, the company announced that it has decided to lower 2020 capital budget by 30% from the prior guidance of $33 billion to $23 billion. Importantly, the company’s significant spending deduction is in line with efforts by other energy majors like Chevron Corporation (CVX - Free Report) , BP plc (BP - Free Report) and Royal Dutch Shell plc (RDS.A - Free Report) .

Headquartered in Irving, TX, ExxonMobil currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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