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HOUSTON, Oct. 12 (Xinhua) -- Phillips 66, a Houston-based U.S. refining company, on Monday announced a huge cut of its capital budget for the year of 2016.
The company's capital spending next year will be 3.6 billion U.S. dollars, a decrease of 18 percent from its budget this year, said Chairman and Chief Executive Officer Greg Garland in a statement.
The budget, excluding Phillips 66 Partners' capital spending, is broken down into nearly 1.3 billion U.S. dollars in sustaining capital, mostly for its refining upgrades and modernization project, and about 2.3 billion U.S. dollars for growth capital, which includes more than 1.8 billion U.S. dollars for its midstream expansions.
The company will also move forward with a 2 billion U.S. dollars share buyback program.
The company's decision to slash next year's capital-spending budget by 18 percent came after the lower oil prices that started last summer continues to pressures the industry.
Phillips 66, an American multinational energy company headquartered in Houston, Texas, is engaged in producing natural gas liquids and petrochemicals. The company has business operations in more than 65 countries and regions, with about 14,000 employees worldwide.
