BAKU, Azerbaijan, April 1
By Leman Zeynalova - Trend:
BP’s full year 2020 Upstream production be lower than in 2019, Trend reports with reference to the company.
“The expected impact of capex interventions on 2020 underlying Upstream production includes a current reduction of around 70 thousand barrels equivalent per day (mboed) attributable to BPX Energy. Looking ahead, full year 2020 underlying Upstream production is expected to be lower than in 2019,” said the company.
As for cost savings, BP expects to achieve around $2.5 billion of cash cost savings by the end of 2021, compared with 2019, with digitisation and increased integration across the group as key drivers of this next phase of cost efficiencies. “Some of these cost savings may have associated restructuring charges, which will be reflected as appropriate in our financial disclosures.”
BP said it has around $32 billion of cash and undrawn facilities available at the end of the first quarter 2020.
BP’s existing divestment program to deliver $15 billion of announced transactions by mid-2021 remains on track.
“The phasing of receipt of $10 billion of divestment proceeds by the end of 2020 may be revised as transactions complete, particularly while volatile market conditions persist. This includes the sale of our Alaskan business to Hilcorp which we continue to expect will complete during 2020, subject to regulatory approvals,” the company said.
“To date, $9.6 billion of transactions have been announced since the start of 2019, with around $3.4 billion of cash proceeds received. This divestment programme is underpinned by a wide range of options, including assets in less commodity-sensitive businesses where demand remains strong.”
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