Bloomberg reported that the world’s biggest maker of seamless pipes used to extract oil and gas Tenaris SA may cut spending as much as 50 percent this year as prices fall.

Mr Paolo Rocca CEO of Tenaris during an earnings conference call with analysts said that the company plans to reduce 2009 spending by 40% to 50% to about USD 600 million.

He said that “We are preserving all of the investment focus on technology, quality and safety in our plants.”

He said that “Tenaris will delay plans to expand production of steel products at a steelmaking plant in Veracruz, Mexico. But will proceed with a plan to spend USD 1.6 billion to increase pipe output at a plant in Veracruz.”

He added that the company may reduce its net debt to near zero by the second half of 2009.

(Sourced from Bloomberg)