BP, the UK’s leading energy corporation, has recently declared its plans to set up a new drilling operation in the Gulf of Mexico, thereby exceeding earnings predictions for the second fiscal quarter. The company, headquartered in London, verified on Tuesday their intentions to erect a sixth installation within the Gulf of Mexico, with the purpose of extracting up to 80,000 barrels of oil per day from the Kaskida field, a site first uncovered in 2006.
Murray Auchincloss, BP’s current CEO following Bernard Looney’s tenure, reassured all stakeholders of his dedication to the advancement of the company’s key oil and gas sector, while also increasing the financial returns for shareholders. Auchincloss voiced his commitment to the Kaskida initiative in the Gulf of Mexico, stating it was a testament to the company’s endeavours to become a streamlined, value-driven and concentrated business.
Auchincloss extolled the Kaskida field, indicating it held an impressive 10 billion barrels of oil situated within the Gulf of Mexico. The initial approval permits the extraction of 275 million barrels at an estimated expense of less than $5 billion (around €4.6 billion). Describing the project as being of exceptionally high standard, Auchincloss emphasized the reduced risk due to familiarity with the blocks.
The executive underlined the need for fresh oil developments in light of the current global oil consumption exceeding 103 million barrels per day, coupled with a reservoir deterioration rate between 3 and 5% per annum. He outlined the project as a low-carbon, superior investment that would be characteristic of the company’s future initiatives.
For the recent quarter, BP’s underlying profits amounted to $2.8 billion, surpassing industry experts’ estimates of $2.5 billion, aided by a reduction in tax liabilities. The corporation has upped its dividend by 10%, equivalent to 8 cents per share, announcing its intention to continue repurchasing shares worth $1.75 billion quarterly throughout the duration of the year. Following the announcements, BP’s stock value increased by 1%, reaching a value of 458.5p closer to the end of London’s morning trading session.
BP’s expansion plans in the Gulf of Mexico proceed despite its own forecasts indicating that global oil demand will have likely plateaued by commencement of production in 2029. The content is protected under the copyright of Financial Times Limited 2024.