Dealing with Cost Cuts in the Oil & Gas Industry – Legal & Strategic Considerations

Dealing with Cost Cuts in the Oil & Gas Industry – Legal & Strategic Considerations

Following the decline in the oil price, Saudi Aramco announced on 15 March 2020 that the company would cut spending in the wake of the coronavirus outbreak. The Abu Dhabi National Oil Company (ADNOC) has notified contractors and suppliers that it will review existing contracts to cut costs due to the steep slide in oil prices. This article deals with the legal implications of such cost cuts, and strategic consideration direct and indirect suppliers should undertake.