ConocoPhillips said its participation in the non-operated Gibson will be its last deepwater exploration well in the Gulf of Mexico, as it looks to cut its spending.
The firm, which announced a plan to reduce deepwater Gulf of Mexico activity last year, recently drilled the US$70 million Melmar dry hole in the Gulf of Mexico.
The non-operated Gibson well is now drilling, however, "that's the last well we plan to drill in deepwater Gulf of Mexico," the firm said on a conference call over its first quarter results.
"In this price environment we don't deem it prudent to continue allocating capital to new deepwater prospects," the company said.
ConocoPhillips no longer plans to drill the Horus or Socorro wells, which its had planned to drill with the Maersk Valiant drillship, pictured.
Cutting its deepwater drilling program accounts for half of the firm's 2016 capital reduction, from US$6.4-$5.7 billion, the firm added.
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