BP cuts investment as sliding oil hits profit

[LONDON] Energy giant BP on Tuesday said it would slash investment this year as tumbling oil prices cut into the group's profits, mirroring a situation across the sector.

British company BP said spending in 2015 was expected to total about US$20 billion (17.6 billion euros), down from a previous guidance of US$24-26 billion.

"We have now entered a new and challenging phase of low oil prices through the near and medium term," BP chief executive Bob Dudley said in a company statement.

"Our focus must now be on resetting BP: managing and rebalancing our capital programme and cost base for the new reality of lower prices while always maintaining safe, reliable and efficient operations."

AFP