China Oilfield Services Ltd. (02883.HK) is cutting prices to boost volumes amid a fall in investment due to plunging world oil prices, the Hong Kong Economic Journal reported Thursday.
The announcement came after major client CNOOC Ltd. (00883.HK) said it will slash capital spending on well testing, exploration and production by 38 percent, 33 percent and 48 percent, respectively, the report said, citing chairman Liu Jian.
Liu said production — and jobs — will be secure when normal well testing resumes.
The spending cut is part of efforts to control cost to offset the impact of falling oil prices on margins, the report said.
The company will ask suppliers to similarly cut prices and bolster their cash position to hedge against any client defaults.
Chief executive Li Yong said bad times call for increased efforts to maintain client trust.
Meanwhile, the company said it has no acquisition or merger plans.
Translation by Vey Wong
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