ExxonMobil, the world's biggest oil company, is set to increase capital spending by at least 20 per cent as escalating labour and equipment costs push up the costs of projects.

The US group is planning to spend more than $125bn over the next five years, compared with $90bn over the previous five-year period, due to a combination of higher costs and the development of new projects.

"The costs are a significant challenge for the industry as a whole, and they're a challenge for us as well,'' said Rex Tillerson, Exxon's chairman and chief executive, at the company's annual meeting yesterday. ... Read full article