Boston, MA 04/25/2014 (wallstreetpr) – BP Plc (ADR) (NYSE:BP) expects production in the current fiscal to increase as compared to last year, with reported production being lower due to these effects.
Strategic decisions
BP Plc (ADR) (NYSE:BP) has sold its stakes in four oilfields on the Alaska North Slope to Hilcorp, a privately held gas and oil producer. The sale agreement includes entire BP’s interests in Northstar and Endicott oilfields and 50% interest in each of Milne Point and Liberty. Sale also includes BP’s interests in gas pipelines and oil associated with these fields.
BP is partnering with Azeri state energy firm SOCAR for Turkey in the Trans-Anatolian natural gas pipeline project (TANAP). SOCAR, currently having a stake of 80%, will sell a 12% stake in TANAP. The project is expected to cost nearly $10 billion and will be built from Turkey’s border with Europe to the Turkish-Georgian border to. As of now, Turkey owns the remaining 20%.
BP has made oil discovery at the Gila prospect in the deepwater United States Gulf of Mexico. This site is also co-owned with ConocoPhillips. Appraisal drilling is required estimate the size and economic potential of the discovery.
BP Plc (ADR) (NYSE:BP) along with the Government of the Sultanate of Oman has signed a gas sale deal and an amended production sharing agreement for the development of the Khazzan field where BP would be the operator. Full field development will involve drilling nearly 300 wells over a decade and a half to deliver plateau production of 28.3 million cubic metres of gas per day and 25,000 barrels of gas condensate. This volume roughly equals 33% of Oman’s aggregate daily domestic gas supply. It will ensure continuing stable supplies from domestic sources. The gas sales agreement and amended exploration and production sharing agreement extend for an initial period of 30 years.
A group of 17 gas and oil companies, including BP has established a project for joint seismic acquisition in the south-eastern Barents Sea. Statoil is the operator of the project. Announcement of blocks will be made in the 23rd licensing round for Norwegian continental shelf (NCS) this year.
