Grappling with the economic fallout from COVID-19, coupled with the recent oil price war between Russia and Saudi Arabia, the Heritage Petroleum Company Limited has announced a string of measures aimed at preserving its financial standing.

In the first instance, Heritage Petroleum says it will reduce its capital expenditure by 49% and  operating expenditure by 21%.

In an effort to drive cash into the business, the company will sell off its obsolete assets, including scrap iron and supply boats.

A “freeze” has also been placed on employment recruitment, with the exception of jobs considered “critical”.

The company has also been engaged in discussions and negotiations with financial institutions, to determine favorable financing arrangements and loan repayments to honor its legacy Petrotrin debt obligations.

The measures were announced on the same day a stunning development occurred globally, with US oil prices falling below zero, to $US -37.63 per barrel. The figure represents a 306% decline.

Interestingly, the company intends to store approximately 2.5 months of oil produced, with the intent to sell it when the market outlook improves. At present, Heritage produces approximately 1.2 million barrels of oil per month.

All of the aforementioned measures, the company says, will be in place for at least the remainder of the current fiscal year.