US supermajor Chevron has cut its spending plans for the year ahead in response to dire oil market conditions, with the largest reductions targeting the unconventionals portfolio in the Permian basin.

The company is reducing guidance for its 2020 organic capital and exploration spending by 20% to $16 billion.

Reductions are expected across the whole portfolio, with $2 billion targeting the upstream unconventionals sector, primarily in the core US shale basin of the Permian, Chevron said.