Marathon Oil is to reduce its conventional exploration spending to just US$30 million, down from more than $250 million in 2015 and from more than $500 million in 2014.
The firm said exploration activity in 2016 would be limited to existing commitments in the Gulf of Mexico and Gabon, with no exploration wells planned.
The firm is focusing most of its $1.15 billion 2016 spending onshore activity in North America, focusing on the Eagle Ford, Oklahoma Resource Basins and the Bakken.
Other North America spending includes outside-operated commitments in the Gulf of Mexico for the completion of the Gunflint project, due online in 2016, as well as further appraisal work on Shenandoah.
The company also plans to spend about $170 million on its international assets, primarily to complete long-cycle projects offshore Equatorial Guinea and onshore the Kurdistan Region of Iraq.
The Alba field compression project offshore Equatorial Guinea remains on budget and on schedule to start up by mid-2016, and will extend plateau production by two years as well as the asset's life by up to eight years. See video below.
"Through this cycle of sustained low oil prices and market volatility, Marathon Oil will continue to focus on balance sheet protection and operational flexibility," Marathon Oil President and CEO Lee Tillman said.
Video - The Alba B3 5800-tonne compression platform installation.The platform components were brought in by barge and then installed in 250ft water depth over 10 days. Marathon Oil is currently in the process of the platform hook-up and commissioning with operation planned for later this year.