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Oil companies tighten belts again as crude price falls

African oil explorers are rapidly revising budgets to take account of the latest market developments. Global oil demand is forecast to fall by 6m b/d in April as countries shut down in an attempt to control the spread of the Covid-19 pandemic. At the same time, the collapse of Opec production cuts means countries led by Saudi Arabia are increasing output to try to preserve market share. West Africa-focused Kosmos Energy said on 17 March it would reduce its planned 2020 capital expenditure by about a third, suspending the dividend and working with BP to defer Phase 1 spending on the Greater Tortue LNG project offshore Mauritania and Senegal.

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