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Oil giant BP plc (LSE:BP.) will report less oil production by the end of 2013 compared to that in 2012 as the company continues to reshape its portfolio in line with its ten-point strategic plan to become a “safer, stronger company”, the London-listed firm said Tuesday.
The statement came along with the company’s 2012 full year results that saw a drop in profit, due in part to lost income as assets were divested to fund costs related to the Deepwater Horizon incident in 2010.
According to the company, it had sold assets worth US$37.8 billion since 2010 whilst spending US$42.2 billion for the Gulf of Mexico incident in 2012.
Last week, 30th January, a US court has accepted BP’s guilty plea for 14 criminal charges resulting to the loss of 11 lives in the Deepwater Horizon rig, ordering the US’ biggest investor in the oil and gas industry to pay record fines of over US$4 billion, including US$1.256 billion in criminal fines, the highest in US jurisprudence history.
Reporting its 2012 full year results, BP charged US$4.1 billion against its fourth quarter financials in connection with the guilty plea and settlement with US Department of Justice.
Doing What Needs To Be Done
In a statement earlier today, BP said this year’s oil production will be 150,000 barrels of oil equivalent per day less compared to that in 2012, though the exact timing will be dependent on several factors.
“We will continue to see the impact of this reshaping work in our reported results in 2013,” BP Group Chief Executive, Bob Dudley, said, but added that the condition will be reversed come 2014 when six major projects become on-stream.
“We are doing the work that needs to be done to be a safer, stronger company. We are steadily building the strong platform for growth in BP for the coming decade,” Dudley closed.
In London, BP shares gained 6.70 pence, or 1.5%, to £4.68 by 11:00 GMT, following the company’s announcement of 9 pence dividend despite reduced a sharp fall in profit from US$23.9 billion in 2011 to US$11.9 billion in 2012.
