BP WILL consider selling some of its assets in the Gulf of Mexico to help meet its new disposal target of $45 billion, as the UK oil group used its third-quarter results to hail “a definite turning point” in its fortunes after last year’s devastating spill.
The higher divestment target – up by $15 billion from a previous level of $30 billion – came as BP reported replacement cost profit, which strips out the value of oil and gas inventory, of $5.14 billion for the third quarter, higher than expected.
BP also promised increased returns to shareholders and set out new cash flow targets.
Shares in BP responded positively, ending the day 4.36 per cent higher at 457.2p in London.
The company declined to comment on where the additional disposals would come from but confirmed they would be primarily from its upstream, or exploration and production, business. “We are talking about assets that are potentially not core to our growth programme,” BP said.
The oil major is the largest licence holder in the gulf. While the region remains core to BP and its future investment plans, analysts said there were lots of smaller fields, not attached to big operating hubs, that would be obvious candidates for disposal.
Meanwhile, Bob Dudley, BP’s chief executive, signalled there was likely to be a delay in the closing of BP’s $7 billion deal to sell its stake in Argentina’s Pan American Energy until next year.
Mr Dudley set out a 10-point plan while promising a detailed strategic update next February.
– Copyright The Financial Times Limited
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