INPEX CORPORATION (INPEX) announced today the current situation concerning the impact of the COVID-19-induced oil price decline on its business operations as follows.
The prices of oil and natural gas are determined in large part by international market trends, which are influenced by numerous factors including international and regional supply and demand fluctuations as well as the condition of the global economy and financial markets.
Currently, oil prices are rapidly declining due to the expectation of a reduction in energy demand following a global economic downturn induced by the COVID-19 pandemic, and the breakdown of the OPEC-plus production cut agreement.
While it remains a challenge at this stage to forecast how long these conditions will last, it is INPEX’s policy to minimise the impact of oil prices maintaining their current level for a certain amount of time by optimising operations, reviewing investment plans group-wide and pursuing further cost-reduction measures, in order to sustain stable business operations. The company will disclose the impact to the forecasted consolidated operating results for the year ending 31 December 2020 announced on 12 February 2020 in a timely manner once the impact is determined.
Read the article online at: https://www.worldpipelines.com/business-news/25032020/impact-of-oil-price-decline-on-inpex-business/