The crash in oil prices has forced oil and gas explorer Premier Oil to cut spending on development next year by 40%.
And it has said it will write off some $300m in its 2014 results, due out next month.
Development spending on new oil fields next year, already cut to $600m, will be “subject to further review”.
The cuts mean the company is already in negotiations to reduce costs with a number of key contractors.
Premier said 2014 revenues are 6% up on 2013, but profits will be hit by an impairment charge estimated at $300m.
Tony Durrant, chief executive, said: “Premier is in a strong position to weather a period of oil price weakness due to its long-term cash flow generation.
“Premier has also responded to the sharp fall in the oil price with a broad programme of cost reductions and the postponement of discretionary spend.”
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