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BP’s upstream output goes down

Oil&Gas Materials 27 October 2020 14:32 (UTC +04:00)
BP’s upstream output goes down

BAKU, Azerbaijan, Oct.27

By Leman Zeynalova – Trend:

Production in BP’s upstream for the quarter was 2,243mboe/d, 12.7 percent lower than the third quarter of 2019 mainly due to divestments in BPX Energy, Alaska and Gulf of Suez oil concessions in Egypt, Trend reports with reference to the company.

“Underlying production for the quarter decreased by 3 percent mainly due to decline associated with reduced capital investment levels and significant weather impacts from hurricanes in the US Gulf of Mexico.

“For the nine months, production was 2,448mboe/d, 6.4 percent lower than the nine months of 2019. Underlying production for the nine months was slightly lower than 2019 reflecting adverse weather, primarily in the US Gulf of Mexico.

“Looking ahead, we expect fourth-quarter 2020 reported production to be slightly lower than the third quarter due to maintenance activity.

“The replacement cost result before interest and tax for the third quarter and nine months was a profit of $30 million and a loss of $20,955 million respectively, compared with a loss of $1,050 million and a profit of $4,303 million for the same periods in 2019. The third quarter and nine months included a net non-operating charge of $631 million and $15,156 million respectively, compared with a net charge of $3,454 million and $4,224 million for the same periods in 2019. The net non-operating charge for the nine months is principally related to impairments associated with revisions to long-term price assumptions. Fair value accounting effects in the third quarter and nine months had an adverse impact of $217 million and $61 million respectively, compared with a favourable impact of $265 million and $47 million in the same periods of 2019.

“After adjusting for non-operating items and fair value accounting effects, the underlying replacement cost result before interest and tax for the third quarter and nine months was a profit of $878 million and a loss of $5,738 million respectively, compared with a profit of $2,139 million and $8,480 million for the same periods in 2019. The result for the third quarter mainly reflects lower liquids and gas realizations, partly offset by lower depreciation, depletion and amortization. The result for the nine months mainly reflects lower liquids and gas realizations and the impact of writing down certain exploration intangible carrying values,” reads the company’s latest report.

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