BP to reduce exploration expenditure, postpone projects in upstream
Baku, Azerbaijan, Feb. 3
By Aygun Badalova - Trend:
BP plans to reduce exploration expenditure and postpone marginal projects in the Upstream, and not advance selected projects in the Downstream and other areas in 2015, BP said in its report on fourth quarter and full year 2014 results.
As a result, organic capital expenditure in 2015 is expected to total around $20 billion, significantly lower than previous guidance of $24-26 billion. Total organic capital expenditure in 2014 was $22.9 billion, lower than initial guidance of $24-25 billion, the report said.
"We have now entered a new and challenging phase of low oil prices through the near and medium term," said Bob Dudley, BP group chief executive. "Our focus must now be on resetting BP: managing and rebalancing our capital programme and cost base for the new reality of lower prices while always maintaining safe, reliable and efficient operations."
BP is now taking action to respond to the likelihood of oil prices remaining low into the medium term and to rebalance its sources and uses of cash accordingly, according to the report.
BP is involved in the projects of developing the block of oil and gas fields "Azeri-Chirag-Guneshli", "Shah Deniz" gas condensate field, the Baku-Tbilisi-Ceyhan oil pipeline and the South Caucasus gas pipeline.