BP 'turning point' as asset sales increase
BP has reached a "turning point", according to its CEO, after announcing strong Q3 figures for 2011.
The company's boss, Bob Dudley, announced profits of $15.9bn for the first nine months of the year turning round a $9.5bn loss for the same period in 2010 which was clouded by $40bn-worth of charges relating to the Gulf of Mexico spill.
Dudley heralded the latest figures as a "turning point" in BP,s oil and gas output, stating: “As our extended turnaround programme moves towards completion we are seeing production return, particularly from Angola, the UK North Sea and the US Gulf of Mexico, where we produce our higher-value barrels.”
The turnaround programme included targeted asset sales of $30bn, but Dudley announced an $15bn extension for a final goal of $45bn in divestment by 2013. This will include the previously indicated sale of thwo US refineries. Sales to date total $26bn.
Focus for the oil giant will now be on investment in exploration and production, plus some other high-growth opportunities, as well as bringing 17 new upstream projects online by 2014, boosting per barrel margins and significantly increasing cashflow.
Dudley stated that the company had introduced a new Safety & Operational Risk organisation with improved drilling standards and all operations being managed under a single system.
Dudley added: "I believe we are living up to our commitments in the Gulf; learning, applying and sharing the lessons of the accident; restructuring BP and putting safety and risk management at the absolute heart of our operations. This will further de-risk the firm.” Currently payments into the Gulf of Mexico Trust Fund stand at $5.1bn, with payments expected to complete by the end of 2012.
