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Marathon Oil CEO Lee Tillman. Image courtesy of Marathon Oil/Youtube.

Marathon Oil Corporation slashed its 2015 capital investment and exploration budget by 20 percent Thursday as low oil prices force upstreams to curb costs.

The new budget will be about $4.3 billion to $4.5 billion, excluding the company’s recently disposed Norway businesses, and will be scalable depending on market conditions.

Marathon expects 2015 annual production growth, excluding Libya, to be in the high single digits.

The company will continue to examine changes in the crude market and the expected impact of price volatility on services costs before finalizing the budget.

Houston-based Marathon said it is “well positioned” to weather the current oil price slump.

“We remain confident in our investment opportunities in the three U.S. resource plays. Our 2015 capital program is not opportunity constrained but will reflect sound discipline in managing cash flows in the current price environment,” Marathon Oil Corporation president and CEO Lee M. Tillman said.

Marathon expects to announce details of its 2015 capital, investment and exploration budget together with its fourth quarter earnings release in February 2015.