BP to maintain production growth until 2020
Azerbaijan, Baku, March 3 / Trend , A.Badalova/
BP is well positioned to maintain production growth until 2020, BP Chief Executive Tony Hayward said at the presentation of company's strategy for 2009.
Last year, the company expected a growth in production until 2012 and planed to maintain the growth until 2020 through existing projects.
"Owing to the existing projects, we expect an output growth until 2013. And we have a potential to continue the growth until 2020 with an average annual growth of about one to two percent," Hayward said.
Last year, BP's reserve base increased by 1.7 billion barrels of oil and gas, thereby changing the ratio by 121 percent.
The changes that the company has made over the past 18 months give it a powerful financial and practical impetus to meet the difficult 2009, he said.
"We intend to meet the challenges of 2009 with a raised head and transform them into profits if possible," Hayward said.
As far as world oil prices are concerned, Hayward said that they will continue to be volatile and in the short term will be determined by the balance of supply and demand.
Price on gas will remain low in the U.S. and the rest of the world in the short term. Restoration of the U.S. economy will be a key factor for a hike in prices, he said.
BP's expenditures will be reduced by two billion dollars in 2009, he said.
BP plans to maintain its capital expenditures this year at the level of 2008 - between $20 and $21 billion. The company will make lowest expenditures for oil processing and alternative energy sources and will continue to invest in exploration and production.
"The U.S. oil processing system has restored operation. We believe that there is a good opportunity to return this business to a profitable position in 2009 after the losses of $700 million last year, Hayward said.
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